It is not only unnecessary to establish a Resolution Authority for systemically significant financial companies but also probably worse than unnecessary. It is probably wasteful and even in some respects dangerous. It would create an entity that must do something when for years there really would not be anything for it to do.

We are in the midst of trying to recover from a major shock to the world's economies, and we have discovered that many large firms, a number of which were deemed to be the "best run" among all firms, could not weather the storm and either failed or have been very badly damaged.

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