Banking system crises are complex events that in a short span of time can inflict extensive damage to banks themselves and to the external economy. The crisis liter- ature has so far identified a number of distinct effects or channels that can propagate distress contagiously both directly within...

Introduction : our message and methods -- What is the problem? -- Why protection is costly -- How pervasive is TBTF? -- Why protect TBTF creditors? -- The growth of TBTF protection -- Testing our thesis : the cases of not too big to fail -- Can the problem be addressed? -- Creating the necessary...