According to Swiss National Bank Chairman Thomas Jordan, there is still a lot needed to be done to let global banks wind down their business without harming the world economy. He made this statement in an interview published last Saturday.
In an interview with Finanz und Wirtschaft, Jordan said, "The too-big-to-fail problem is not yet fully solved."
Banking authorities have been struggling since the Lehman Brothers collapse in 2008 as to what is condidered as systematically important and if the bank can be recapitalized without ensuing panic or requiring further cash from public coffers.
When UBS, Switzerland's largest bank, sought to be bailed out by the government back in 2008, Swiss regulators have required tougher capital requirements for banks, even going beyond what is required under Basel III regulations.
Jordan added, "If the winding down isn't possible then the buffes have to be raised accordingly."
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