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)