The former IMF chief economist and current professor at MIT’s Sloan School of Management, Simon Johnson, addressed the “Too Big to Fail” dilemma at INET’s Bretton Woods Conference. His conclusion is that we are going in the opposite direction, where too big to fail institutions are only getting bigger as they are borrowing cheaper than their smaller competitors.
“The bankers want to be paid, unadjusted for risk, from a return on equity basis…What is the size of the private gain relative to the public loss?”
