‘Too big to fail’ is still a threat to the financial system

By: Bob Diamond

Five years ago, I was in the New York Federal Reserve building, engaged in discussions with Hank Paulson, then US Treasury secretary, Tim Geithner, the New York Fed president, and others. We were meeting about the possibility that Barclays could acquire Lehman Brothers, which was teetering on the verge of bankruptcy. It soon became clear that neither regulators, legislators nor bankers were equipped to prevent the collapse of a leading global financial institution.

-Financial Times