"We have such a regime for insured depository institutions, but it is clear we need something similar for systemically important nonbank financial entities," he said in prepared remarks to a community bankers convention in Phoenix.
"Improved resolution procedures for these firms would help reduce the too-big-to-fail problem by giving the government the option of safely winding down a systemically important firm rather than keeping it operating," he said.
And while I agree having procedure in place in advance, FDIC-like, is a good idea, it isn't clear why the lack of those procedures prevents us from "safely winding down a systemically important firm rather than keeping it operating." If Timmeh hadn't spent all those months chasing an idea that even Paulson knew was crap, we could have been doing just that.