ABSTRACT
This chapter shows the story of G-SIBs through the lens of the Global Financial Crisis. First, the pre-crisis regulation in the USA and in the EU is briefly described, and its loopholes, as well as its overly general character with no discretionary tools to adjust it, are underlined. Further, the functioning of G-SIBs in such a regulatory landscape is presented, as their mode of operations differed vastly. Specifically, it shows that some G-SIBs exploited the general character of these provisions and hence contributed to the crisis without actually breaking the law. Lastly, this chapter presents how regulators seem to have understood their mistakes and started making amends, which provided the foundations for a new framework for G-SIBs.
