Another important common concern is the "too big to fail" syndrome - the presumption that an institution is so large or so inter-connected with counterparties that its creditors (possibly even shareholders) must be protected. One unfortunate consequence of the massive public assistance provided both banks and nonbanks in dealing with the present crisis is that moral hazard may, I am afraid, become more deeply embedded.

The following is from the keynote address by former Federal Reserve chairman Paul Volcker to a meeting of the International Institute of Finance in Beijing, June 11: