Wednesday, July 10, 2013

Fumbling Through the Fog Around Too Big to Fail

When Republicans invite a Democrat to testify at a congressional hearing and Democrats invite a Republican, we should pay attention. Such cross-partisan connections aren’t common and typically indicate that congressional leaders are trying to answer difficult questions. That was certainly the case recently, when the House Financial Services Committee held a hearing on how to end “too big to fail.”
Specifically, the topic of the June 26 session was “Examining How the Dodd-Frank Act Could Result in More Taxpayer-Funded Bailouts” -- whether the procedures put in place since 2010 to handle the failure of very large financial institutions would work, and whether we should expect the extraordinary official support provided to those institutions to fade away. The conclusion: The problem of too-big-to-fail banks is alive and well, and looms over our financial future.

http://www.bloomberg.com/news/2013-07-08/fumbling-through-the-fog-around-too-big-to-fail.html 

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