Deputy Treasury Secretary Neal Wolin addressed the Financial Services Roundtable today.  His prepared remarks included the following key paragraphs,

“The days when being large and substantially interconnected could be cost-free – let alone carry implicit subsidies – should be over.  The largest, most interconnected firms should face significantly higher capital and liquidity requirements. 

“Those prudential requirements should be set with a view to offsetting any perception that size alone carries implicit benefits or subsidies.  And they should be set at levels that compel firms to internalize the cost of the risks they impose on the financial system.    Continue reading “Neal Wolin And The Bankers” →