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'Too Big to Fail' Metric Makes Bank of America, JPMorgan Safer

Publication Date: 
September 22, 2008
Source: 
Bloomberg Worldwide
Author: 
Bradley Keoun

Professor Kenneth E. Scott is quoted in a Bloomberg Worldwide story about the banking crisis on Wall Street:

It might be a better idea to prevent banks "from growing to the point that we couldn't accept their failure," said Kenneth Scott, who served as general counsel at the Federal Home Loan Bank Board in the 1960s.

"Even a well-designed regulatory system isn't going to succeed in eliminating failure," said Scott, now a professor emeritus at Stanford Law School. "The problem is not the combination of banking and securities per se. It's a function of sheer size.''