tag:blogger.com,1999:blog-14072474.post4169840443982027877..comments2023-11-03T06:36:27.305-04:00Comments on Phronesisaical: On Bank "Bailouts"helmuthttp://www.blogger.com/profile/09069600766378586919noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-14072474.post-56336701806167753412010-04-22T01:07:54.403-04:002010-04-22T01:07:54.403-04:00I think the problem with the idea behind this bill...I think the problem with the idea behind this bill is that it assumes the people in charge will actually break up a "too-big-to-fail (TBTF)" bank. For example Congress, in this recent crisis, decided to bail out the banks rather than liquidate them. Who can guarantee a future Congress, well lubed with Wall Street money, won't do the same? So I think this legislation is pretty much meaningless.<br /><br />The way to prevent systemic risk from TBTF banks is to regulate banks so they don't and can't become TBTF.Anonymousnoreply@blogger.com