February 3, 2012

Progress on Letting Big Banks Fail

Simon Johnson, New York Times

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The drafters of the Dodd-Frank financial reform law got an important thing right. Despite fierce pushback from the banks — and lackluster support from the White House at critical moments — the legislators communicated a key new intent: megabanks must be able to fail, and the Federal Deposit Insurance Corporation should be in charge of that liquidation process.

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TAGGED: Banks, Too Big To Fail, FDIC, Dodd-Frank, Simon Johnson

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