The course of the recent financial crisis has highlighted the importance of banks for an economy. Banking crises are not limited to the financial sector; they also affect the real economy with serious consequences. One reason for the high degree of correlation within the financial system is that individual financial institutions have reached enormous sizes, so the collapse of these institutions can pose systemic risks. Consequently, in many countries, such financial institutions are considered too-big-to-fail (TBTF). This term refers to the circumstance that the state cannot allow financial institutions deemed too-big-to-fail to fail without risking economic damage. Such institutions enjoy state guarantees and remain unaffected by market discipline. For this reason, the term TBTF has been associated with the stability of a financial institution. However, the collapse of Lehman Brothers shook the entire financial world. Since then, the term TBTF has shifted from being a stability factor to a risk factor. This book addresses the question of how to appropriately deal with TBTF banks in Europe.