Treasury’s Miller Says Too-Big-To-Fail Bailouts Are Over

U.S. is finished rescuing financial institutions, no matter how big, she says.

U.S. banks won’t be rescued by taxpayers, U.S. Treasury Department official Mary Miller said, rebutting investor skepticism that some lenders are too large to be allowed to fail.

“A common use of the too-big-to-fail shorthand is the notion that the government will bail a company out if it is in danger of collapse because its failure would otherwise have too great a negative impact,” Miller, the Treasury’s undersecretary for domestic finance, said in remarks prepared for a speech in New York late yesterday. “With respect to this understanding of too-big-to-fail, let me be very clear: It is wrong.”

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