CAMBRIDGE, MA, May 9, 2016
This Nothing but the Facts statement by the Committee on Capital Markets Regulation[1] is in response a request for public comment by Neel Kashkari, President of the Federal Reserve Bank of Minneapolis. In his recent speech, “Lessons From the Crisis: Ending Too Big to Fail,”[2] President Kashkari contends that the largest U.S. banks are “too big to fail” and that their size poses a significant, ongoing risk to the U.S. economy.[3] President Kashkari then commits to deliver a plan to the public by the end of 2016 for a transformational restructuring of our financial system in order to end “too big to fail”.[4] In this statement, we identify six relevant facts that should be considered in evaluating whether a transformational restructuring of our financial system predicated on the existence of large banks is appropriate. While a constructive debate can revolve around the relative significance of these facts, we do not engage in that debate herein.

You can read the entire statement in pdf here.