Eliminating Dodd-Frank's Overrated Escape Hatch

As Congress debates financial reform, one piece of Dodd-Frank that is potentially on the chopping block is the Orderly Liquidation Authority (OLA)—a mechanism to wind down large financial institutions. As with many other parts of Dodd-Frank, its inclusion in the law is an understandable reflection of the time at which it was written. Since then, however, we have had time to rethink the wisdom of the provision. It is time for the OLA to go away.