We have our first story in Politico, which I hope you’ll read here and I hope you’ll circulate it too. Dave Dayen was kind enough to tweet it.
Having said that, I’m really distressed about the headline, which badly misrepresents the article. The author (and most of the time the editor) does not control the headlines. As you can see, the piece nowhere says anyone has solved the too big to fail problem, nor does it discuss what “Europe” has done. As regular readers know well, Europe in general is behind the US in cleaning up its banks on any level: increasing capital levels, having meaningful stress tests (even the US exercise has more teeth than the European version). And its bail in scheme, fondness for CoCo bonds (contingent capital) and lack of Eurozone-wide deposit insurance increase rather than reduce the odds of bank runs.
— David Dayen (@ddayen) April 19, 2016