FSB has welcomed the proposals from the US to address the moral hazard of too-big-to-fail institutions. It says it is considering several other options to address the problem, including:
- targeted capital, leverage and liquidity requirements;
- better supervisory approaches;
- simpler firm structures;
- stronger national and cross-border resolution frameworks; and
- changes to financial infrastructure that reduce contagion risk.
FSB thinks a mix of approaches will be necessary. (Source: Press Release)