What makes a bank “too big to fail”?

Mar. 27, 2023

Per Strömberg, Professor at Stockholm School of Economics and the Swedish House of Finance, spoke to Kapitalet, a Swedish financial economics podcast, about the concept of "too big to fail," which refers to companies that are so large and interconnected that their failure could have negative consequences for the entire economy. Strömberg delves into the financial interconnectedness of the banking sector, moral hazard, and lessons learned from the global financial crisis.