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This raises important questions regarding financial stability. For example, Lehman Brothers had about $600 billion in assets at the time of its failure, yet Countrywide, which collapsed with $211.7 billion in assets, would not qualify as a SIFI under the new framework. Industry experts suggest that while an increase in the threshold could alleviate some regulatory burdens on smaller institutions, it could also risk leaving banks of significant size, but below the new limit, without adequate oversight.
Regulatory Flexibility and the Role of the Federal Reserve