Abstract

Just like man dies as his vital functions cease, also companies “die” when they lose the capacity to pay their liabilities. The benefactors of this phenomenon are responsible competitors. Protecting certain market players against bankruptcy is tantamount to deprecating behaviours promoting risk management and upsetting the principles of fair competition. The slogan ‘too big to fail’ endangers stability of the financial system as it promotes moral gambling and dictates that risks and related costs be shifted onto the public. Bank’s profi ts become a personal matter of their shareholders, whereas losses become a social problem. Bankruptcy is a value that is worth guarding.