From Bailouts to Bail-ins: Will the Single-Point-of-Entry Concept End "Too Big To Fail"?

The article discusses the undesirability of bailouts given by sovereign governments to troubled financial firms that has led global policymakers to focus on bail-in approaches in minimizing the impact of bank failure. It notes the paper jointly released in 2012 by the U.S. Federal Deposit Insurance Corp. (FDIC) and the Bank of England (BOE) outlining the merits of single-point-of-entry (SPOE) strategy. It also outlines the provision of the proposal applicable to the U.S. financial institutions.