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Complex Financial Institutions And Systemic Risk, Utset A. Utset

Georgia Law Review

Modern financial institutions are large, complex, and
highly interconnected. In the wake of the financial crisis
of 2007-2009, commentators and policymakers have given
considerable attention to large institutions, particularly
those that can become "too-big-to-fail." This Article takes

a novel approach to this general problem. It begins by
asking a foundational question: given the extraordinary
volume of transactions between large, complex
institutions, what mechanisms do they use to protect
themselves from the risks created by their complexity, and
how do those mechanisms affect the stability of the
financial system? To keep the problem manageable, the
Article focuses on one type of …