market participants to assess and segment banks by their riskiness. In conclusion, total elimination of a government safety net is not the answer to solving the moral hazard problem with TBTFs. It is limiting their capacity and involvement, coupled with alternative approaches to insure against a banking institution's propensity for risk that should be the main focus. The only problem is unforeseen changes, be it structural or technological, that increases not only risk, but the likelihood that any policy that may pass will eventually be reduced in effectiveness. ...
