policymakers who want to reduce creditors' expectations

While safety net expansion has increased TBTF concerns, the essence of the problem and underlying cause of TBTF remain clear: Policymakers support large-bank creditors to contain or eliminate spillover effects, but the support creates an incentive for too much risk-taking in the future. Our approach is straightforward. If spillovers lead to government support, then policymakers who want to reduce creditors' expectations of such support should enact reforms that make spillovers less threatening. Reforms that fail to address this fundamental issue will not change policymaker behavior and will not convince creditors that they face real risk of loss.
So what should policymakers do to address concerns over spillovers? The Federal Reserve Bank of Minneapolis recommends an approach labeled systemic focused supervision (SFS), which focuses supervision and regulation efforts on spillover reduction, and which consists of three pillars: