Treasury - Ninth Report
Too important to fail-too important to ignore

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Here you can browse the report together with the Proceedings of the Committee. The published report was ordered by the House of Commons to be printed 22 March 2010.

Contents

Terms of Reference

Summary

1 Introduction

Too important to fail—too important to ignore

Difficulties in policy making

Trade-offs

Uncertainty

Systems within systems

Conduct of the inquiry

2 The objectives of banking system reform

How to design a banking system

Objective 1: Protecting the consumer

Objective 2: Protecting the taxpayer

Objective 3: An appropriate correlation between risk and return

Audit

Objective 4: Ensuring sustainable lending to the economy

Costs of financial instability

Socially useful activity

Reducing moral hazard

Conclusion

Ending too important to fail?

3 Evolutionary reform

Better risk management

Better supervision

The Basel reforms

Capital and liquidity regulation reform

Leverage ratios

Levies

Deposit protection

Contingent capital

4 Structural reform

Are large banks good for the economy?

The advantages of diversification

Subsidiaries

Europe

Narrow banking

Professor Kay's proposals

The US reforms

Banning proprietary trading

The structure of bank ownership liability

The Government's position

Conclusion

5 Allowing banks to fail

Living wills

Living wills and company structure

International resolution authorities?

European Resolution and Recovery Schemes

6 The future

Choosing a balance

The international agenda

The pace of reform

Future work

Macroprudential tools

Competition

Conclusions and recommendations

Formal Minutes of the Treasury Committee

Witnesses

List of written evidence

Reports from the Treasury Committee during the current Parliament

Oral and Written Evidence

Tuesday 19 January 2010

Tuesday 26 January 2010

Tuesday 9 February 2010

Monday 22 February 2010

Tuesday 23 February 2010

Tuesday 2 March 2010

Thursday 4 March 2010

Written Evidence

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Prepared 29 March 2010