Dimon and Kashkari Face Off on ‘Too Big to Fail’

The transcript discusses Jamie Dimon's shareholder letter advocating for taxpayer protection in bank failures, and Neil Kashkari's disagreement, arguing 'too big to fail' isn't resolved. The debate extends to capital requirements and the role of equity capital. Kashkari's use of social media for Fed communication is highlighted, reflecting a shift in how officials engage with the public.

What is the main argument presented by Jamie Dimon in his shareholder letter?

• Major banks should be allowed to fail without taxpayer intervention.

• The government should increase capital requirements for banks.

• The American public should invest more in banks.

• Taxpayers should bear the cost of bank failures.

What is Neil Kashkari's stance on the 'too big to fail' issue?

• He agrees with Jamie Dimon that it has been resolved.

• He believes it remains an unresolved issue.

• He thinks it is not a significant problem.

• He suggests reducing capital requirements for banks.

What is a key concern regarding bondholders during financial crises?

• They always take losses.

• They are often protected, creating a moral hazard.

• They are the first to suffer losses.

• They have no impact on financial stability.

How has Neil Kashkari been communicating his views to the public?

• Through official Fed reports only.

• Via blogging and social media.

• By holding public meetings.

• Through traditional press releases.

What potential issue arises from Fed officials using social media?

• It can lead to market confusion if not carefully managed.

• It is always well-received by the public.

• It always provides clear and nuanced information.

• It is the most reliable form of communication.