Alternatives Quote by Sheila Bair
“If an institution has become so large that there is no alternative except for the taxpayers to provide support, should we allow so many institutions to exceed that kind of threshold?”
About This Quote
Source Speech: Testimony before US Senate Banking Committee, 2009
When institutions grow too big, taxpayers become the only backup, raising concerns about moral hazard and fairness.
In simple terms: Huge institutions may rely on taxpayers for rescue.
Key Takeaway
Consider limits on size and risk.
Themes
economics
public policy
risk management
Mood
concerned
critical
Type
policy
analytical
When to use this quote
- banking reform
- taxpayer protection
- government oversight
Key Concepts
moral hazard
systemic risk
regulation
Questions to Reflect On
- Should size limits be enforced?
- How to balance innovation and safety?
A Different Perspective
Large size can stifle competition and increase systemic risk.
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