In the aftermath of the 2008 global financial crisis, the G20 endorsed a number of reforms intended to make the financial system safer. A central element of these refers to the “too-big-to-fail” (TBTF) reforms aimed at reducing moral hazard and systemic risks.
On 4th September 2020, Alberto Gallo, Portfolio Manager of the Algebris Global Opportunities Fund, took part in a Financial Stability Board (FSB) virtual workshop to discuss the effects of the TBTF reforms and the financial system fragility. The aim of the workshop was to evaluate and exchange views with industry representatives, academics and other stakeholders on the findings of the consultation report on TBTF reforms for banks. Among the other speakers: Dietrich Domanski, FSB Secretary General, Paul Tucker, Harvard University and Systemic Risk Council, Viral Acharya, New York University Stern School of Business, and Maria Soledad Martinez Pería, IMF.
In particular, Alberto Gallo shared results and considerations on the market perceptions of the credibility of TBTF reforms, discussing the main findings of the analysis on the chapter 4 of the consultation report with Paul Tucker.
To find out more on Alberto Gallo’s presentation, please click here and access the full document.
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