Academic

The New "Too Big to Fail" Proposal--Skeel

By David Skeel and Bill Stuntz

The Obama adminstation's new financial reform proposals, like the version proposed several months ago, would give regulators the power to step in and take control of large nonbank financial institutions, as the FDIC already does with commercial banks.  As folks who have stumbled on this blog in the past  will know (and are no doubt tired of hearing about), I think this is a serious mistake.  This magazine article describes the concerns in a bit more detail, and offers what I think would be a better approach.  I'd be very interested in reactions.

Full post as published by Less than the Least on June 20, 2009 (boomark / email).