Finally, an important element of addressing the too-big-to-fail problem is the development of an improved resolution regime in the United States that permits the orderly resolution of a systemically important nonbank financial firm. We have such a regime for insured depository institutions, but it is clear we need something similar for systemically important nonbank financial entities.
Improved resolution procedures for these firms would help reduce the toobig-to-fail problem by giving the government the option of safely winding down a systemically important firm rather than keeping it operating. 3  See "Interagency Statement," note 2. 4  Ben S. Bernanke (2009), "Financial Reform to Address Systemic Risk," speech delivered at the Council of Foreign Relations, Washington, D.C., March 10.