derivatives and securities firms

and bailouts

Derivatives, because of all their interconnections, have made that job tougher. Moreover, the interconnections frequently lead to securities firms and other nonbanks, to which government safety nets might have to be extended if the banking establishment is to be protected. Without precisely conceding that point, Corrigan says that ''for these purposes, the distinction between banks and nonbanks is hardly relevant. If something bad happens, everybody's just got to do the right thing.''