Friday, August 01, 2014

Too big to fail is going out of style, says new GAO report

Vox says Too big to fail is going out of style, says new GAO report

"Both left-wing and right-wing critics of the Obama administration's financial regulation initiatives have levied the charge that Dodd-Frank did not end 'too big to fail' or reduce the future need for bailouts. These phrases are open to a variety of interpretations, but the GAO study shows that large banks really are subject to increased market discipline these days.

It is certainly possible that the biggest banks retain some residual advantage and that additional regulatory measures against them are warranted. But Dodd-Frank has clearly made some meaningful strides in this direction, among others."

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