Marketplace quotes Justin Wolfers on "too big to fail"
Monday, October 22, 2012
American Public Media's Marketplace spoke with Justin Wolfers in a segment about whether some insurance companies might be "too big to fail."
The Marketplace story, which reported that federal regulators are investigating the "systematic importance" of the financial arms of several insurance companies, asked Wolfers how regulators might know if a company is "too big to fail."
"You have to be incredibly successful, because you have to be big and interconnected," Wolfers told Marketplace. "It means they're so big and their financial transactions are so interconnected with other firms, that if they went belly-up, it could possibly cause some kind of financial crisis."
[Listen to the full Marketplace segment below]