‘Too Big to Fail’ May Still Exist Despite Democrats’ Regulations

CNSNews ^ | 6/15/11 | Matt Cover

[CNSNews]

Washington (CNSNews.com) – Christy Romero, the acting Special Inspector General for the TARP bank bailout program, told the House Financial Services Committee on Tuesday that the Dodd-Frank financial regulatory law may not end the “too big to fail” policy and the moral hazard surrounding it.

Testifying before the House Financial Services Committee’s Financial Institutions and Consumer Credit Subcommittee, Romero said that as far as the market is concerned, too big to fail is not dead.

“The mere enactment of the Dodd-Frank act did not end the concept of ‘too big to fail’ in the market’s eyes,” Romero said. “So long as the financial institutions, counterparties, and ratings agencies believe there will be future bailouts, competitive advantages associated with ‘too big to fail’ institutions will almost certainly persist.”

[dalebert]

I am sure it still exists..what has changed..except we are poorer. Our government is still telling us bend $#J*

[Mariner]

Rome fell. Byzantine fell. The Holy Roman Empire fell.The Ottoman Empire fell. The Mongol Empire fell. The British Empire fell. The Soviet Empire fell.

NOTHING is to big to fail.