Explain Why Businesses Are Not Too Big To Fail Essay

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All humans must fail to succeed. This means that all people must make mistakes because none of us are perfect and we learn from our mistakes. We have to fall in order to grow. This also applies to businesses. Businesses fail just like people. Even though the end of a larger company may have a negative impact on the economy, big businesses are not too big to collapse; because when the government determines they are, they are subject to more regulation and must hold on to more capital which can be a problem.
The failure of big companies may result in economic disaster, but the government takes to strong of a position. After Judge Rosemary M. Collyer, said that MetLife is not too big to fail, Jacob J. Lew, the treasury secretary responded, “In overturning the conclusions of experienced financial regulators, the court imposed …show more content…

For example, when “A judge determined that the government’s process for designating MetLife a systemically important institution was not just “fatally flawed,” but seemingly purposely so. ‘Every possible effect of MetLife’s imminent insolvency was summarily deemed grave enough to damage the economy,’ Judge Rosemary M. Collyer wrote in her opinion” (Sorkin). In addition, G.E. does not like being too big to fail. “General Electric wants to be removed from the federal government’s list of too-big-to-fail financial institutions, arguing that it’s no longer a major.General electric doesn’t want to be part of the federal government because they won't let them fail and forced to keep the business going.The federal government will keep giving the company loans because the company is to big to fail. player in the financial institutions, arguing that it’s no longer a major player in the financial service industry” (Zarroli). According to (Zarroli)the financial institutions argue that it shouldn't be a major because it’s a

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