The fall of Lehman Brothers in September 2008 still haunts bank regulators. Throughout Europe, officials are working to put in place plans that would enable big banks to go broke without causing the chaos that ensued after Lehman’s demise.
Producing credible recovery and resolution frameworks is proving tough. The process involves not only trying to coordinate among national regulators, who often barely disguise their distrust for one another, but shaking up the very structure of banks.
