| dc.description.abstract | Global regulators only began to think programmatically about systemic risk when
the enormity of the GFC’s damage to the financial system became clear. Before
then, a handful of systemic events in US financial history after the introduction
of FDIC insurance periodically focused attention on the topic. Systemic failures
had been a recurring staple of the period prior to the inception of FDIC insurance,
leading eventually to the creation of the Federal Reserve System in 1913. The
term ‘TBTF’ originated with the failure of Continental Illinois National Bank in
1984, the largest bank failure until the GFC.1
However, an extended period of
stable economic growth in the US since the 1980s, known as the ‘Great Moderation’, helped downgrade financial instability to a secondary concern of regulators
and other policymakers. | |
