US Federal Reserve dismisses protection for large financials

The US Federal Reserve has today issued a statement suggesting that the days of "too big to fail" institutions are well and truly in the past amid hopes that no one group of companies will ever again hold the worldwide economy to ransom. There is no other sector in world which could attract the same attention as the financial industry, whether in the boom times or the bust times, with billions upon billions of pounds of taxpayer's money used to prop up the struggling sector in the aftermath of the credit crunch.

If there is one event which will pinpoint the end of the era of "too big to fail" it is the sudden and dramatic demise of Lehman Brothers. This is a company which was entrenched in the worldwide financial industry and had tentacles in every area of the financial globe. However, once the credit crunch hit home it soon became apparent that the US authorities were not willing, and potentially not able, to rescue the company from its troubles.

Even to this day, more than three years after the credit crunch hit home, accountants and liquidators are still trying to unravel the various subsidiaries of Lehman Brothers which is proving very difficult given the size of the company.