"TBTF"

No bank, however big and well capitalized, can withstand the onslaught of a systemic breakdown of market-wide counterparty exposure built by multilevel marketing of liabilities such as subprime mortgages and their securitization.

Coming Implosion: Too Big To Fail and the Theory of Large Numbers

Monday, 11/9/2009 - 11:30 am by Henry Liu

Roosevelt Institute Braintruster Henry C.K. Liu examines the failure of the Obama administration to address the risky business of Too Big to Fail banks — which are getting bigger all the time.

The potential failure of banks deemed too big to fail (TBTF) presents unsolvable challenges for policymakers. Because the systemic impact of such failures on the financial, economic and social order is unacceptable, government has to intervene in a market crisis.

Comments

[Online MLM]

That's makes me confusing. if the big one even could fall. Which one would we choose?

[TexasCowboy]

Which is precisely why reinstating the Glass-Steagall act should be the first of many steps to help address this situation.