Federal Reserve Chairman Ben Bernanke offered only hedged assurances to the Senate Banking Committee that the perverse doctrine of too-big-to-fail was going away.
Taking a grilling from Democratic Sen. Elizabeth Warren from Massachusetts this week, Mr. Bernanke said getting rid of too-big-to-fail – the expectation that certain large banks would be bailed out because they are systemically important – would take more time.
“I assure you that … I would very much like to have confidence we can close down a large institution without causing damage to the rest of the economy,” he said.
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