Magliocca, Gerard N.2014-04-232011Magliocca, Gerard N. "'Too Big To Fail' States." Connecticut Law Review 43, no. 4 (2011): 1089-1095.0010-6151https://hdl.handle.net/1805/4321This Essay explores the constitutional implications of a threatened default by a large state. Much like the huge financial institutions that became distressed in 2008, a large state might well be deemed too big to fail. If that kind of state seeks a federal bailout, it would hold most of the cards in any negotiation because Congress lacks the power to compel a state to pay its debts. After outlining this hold-up issue, the Essay concludes by assessing some possible responses by Congress, such as invoking the Guarantee Clause or imposing future fiscal penalties under the Spending Clause.en-USState government bankruptcy -- United StatesFederal government -- United StatesArticle