Professor Gregory Connor:

This was a mistake made by many European countries, including the UK, which found that their bank resolution mechanisms were insufficient for the modern world. I think that has been taken care of with the bank resolution and recovery directive, which came into power last month, and the single supervisory mechanism, which includes resolution controls. The US was overconfident partly because its system, which has now been brought to Europe, works well. Liquidity funding and bank restructuring need to be done by the same body. Somebody needs to decide whether it is a liquidity problem or an insolvency problem and, if it is the latter, have the authority to restructure the bank. That was missing but I do not think it is a missing piece now.