As they suggest, fully offsetting any remaining too-big-to-fail subsidies and forcing full internalization of the social costs of a SIFI failure may require either a steeper capital surcharge curve or some other mechanism for requiring that additional capital be held by firms that potentially pose the greatest risks to financial stability.
Improving SIFI resolvability There are at least three key obstacles that policymakers must overcome to maximize the prospects for an orderly resolution of a global financial firm.