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Aymo Brunetti

Aymo Brunetti is a professor and managing director at the Department of Economics, University of Bern. Previously, he had worked in various senior positions at the Swiss government's State Secretariat for Economic Affairs. Since joining the university, he has continued to work in economic policy consulting, particularly on financial market regulation, where he has chaired various expert groups of the Swiss government.
Commentary

Big Banks Must Become Globally Resolvable—or Significantly “Smaller”

Aymo Brunetti
The subsidized emergency takeover of Credit Suisse by UBS brings the current global "too big to fail" regime into question. This column argues that an in-depth analysis of the global resolution framework by both regulators and academics is needed. The main question is whether a resolution of a global systemically important bank is indeed feasible in plausible scenarios. An affirmation would clearly be the best possible result of this analysis. However, if such a resolution proves not to be realistic, then there should be no hesitation to drastically reduce the global risks of such institutions via regulation of their business models.

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