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National Debt Glossary: Understanding 'Too Big to Fail Ideology' Skip to content

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National Debt Glossary

'Too big to fail'

Government practices that protect large banking organizations from the normal discipline of the marketplace because of concerns that such institutions are so important to markets and their positions so intertwined with those of other banks that their failure would be unacceptably disruptive, financially and economically.

SOURCE: Federal Reserve

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