CNBC's Kudlow: Dodd Bill Is 'Terrific Free Market Reform' (VIDEO)
Free market champion and CNBC host Larry Kudlow thinks that the Dodd financial reform bill will zip through Congress.
In a panel segment featuring several financial insiders, Kudlow backed the Senate bill, arguing that the legislation does enough to combat the Too-Big-To-Fail problem: "The public hates Bail Out Nation," he said, "and they hate too big to fail."
The logic behind Kudlow's assertion seems to be that Dodd's bill gives regulators the authority to unwind failing financial firms -- and impose losses on bondholders and secured creditors. (This, of course, wasn't the case during the financial crisis when the creditors of bailed-out firms received massive rescues.)
"I've interviewed both Senators Gregg and Shelby...really want to make [the bill] as tight as possible to end Too Big To Fail. Consumer protection is still stand alone and the derivatives is still out there. But on Too Big To Fail, I'm seeing progress."
Raj Date, the director of the Cambridge Winters Center, a financial think tank, agreed with Kudlow, saying he was "quite confident that a number of Republicans will peel off and pass this."
And CNBC's John Harwood added to the consensus. Referring to Barney Frank's comments that the bill will force creditors to recognize losses during the failure of huge firms, Harwood predicted the legislation will easily progress through Congress: "Frank plus Kudlow equals a bill going to pass," he said.
"I've been behind this thing from Day 1," Kudlow said. "This is a terrific free market reform!"