The "too big to fail" policy doctrine prevalent through the 1980s and most of the 1990s is remised on the separation of small depositors who would receive deposit insurance and large depositors who would not receive the benefits of deposit insurance.

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The "too big to fail" policy doctrine prevalent through the 1980s and most of the 1990s was based on the idea that some financial institutions were so large and interconnected that their failure could cause a widespread economic collapse. The doctrine involved providing government support to these institutions in times of crisis, rather than separating small and large depositors. Deposit insurance applies to all depositors up to a certain limit, regardless of the size of their deposits.

The "Too Big to Fail" Policy Doctrine Prevalent Through the 1980s