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Too Big to Fail

Paul Volcker, Elizabeth Warren, Ted Kaufman: We Need New Law

Simon Johnson | Posted 05.25.2011 | Business
Simon Johnson

(From the author of the book 13 Bankers, out tomorrow) Some people at the top of the administration begin to understand that it makes both economic ...

Is Paul Volcker Barack Obama's Potted Plant?

Miles Mogulescu | Posted 05.25.2011 | Politics
Miles Mogulescu

If after all the fanfare, photo ops, and promises to fight, the Obama administration shamefully doesn't manage to get the Volcker rules into an already weak financial reform bill, I hope Volcker doesn't wait until the next life to speak out.

Chris Dodd Gives Ground On Financial Reform Bill After Tough Criticism: Simon Johnson

Baseline Scenario | Simon Johnson | Posted 05.25.2011 | Business

Senator Chris Dodd has good political antennae. He knows that his financial reform bill will come under severe pressure because it has a weak heart -...

DK Matai | Posted 05.25.2011 | Business
DK Matai

Editor's Note: This post has been removed from the Huffington Post....

Senator: Which Part Of 'Too Big To Fail' Do You Not Understand?

Simon Johnson | Posted 05.25.2011 | Business
Simon Johnson

If a megabank shut-down under pressure was impossible for our policymakers last year, how exactly will the situation change after the Dodd bill passes?

Even Capitalist Pigs Should Love Bank Regulation

Vitaliy N. Katsenelson | Posted 05.25.2011 | Business
Vitaliy N. Katsenelson

Greater government involvement in the financial sector is not something I thought I'd ever ask for, but it has turned into a necessity in order to preserve, not destroy, capitalism. At the risk of been kicked out of the Capitalistic Pig Party, I am in support of tighter regulation of too-big-to-fail (TBTF) institutions.

Senator Shelby: Dodd Bill Doesn't Fix 'Too Big To Fail'

Posted 05.25.2011 | Business

Alabama Senator Richard Shelby, the ranking Republican on the Senate Banking Committee, has written a letter to Treasury Secretary Tim Geithner voicin...

Bury Our Banks in Style!

Iris Mack | Posted 05.25.2011 | Business
Iris Mack

How can we bury the Too Small To Bailout banks in style? Here are a few suggestions.

Finally, a Bill to Reinstate Limits on Bank Size

Stacy Mitchell | Posted 05.25.2011 | Business
Stacy Mitchell

A new Senate proposal calls for reinstating strict caps on the size of banks. It would mean breaking up at least five big banks.

The Ruse of Too Big to Fail

Sam Zamarripa | Posted 05.25.2011 | Business
Sam Zamarripa

Yes, systemic risks exist and interconnectivity extends risk into the fabric of our lives and businesses, but how did that risk get transferred to the federal government, then to you and me?

Canadian Banking Is Not The Answer

New York Times | PETER BOONE AND SIMON JOHNSON | Posted 05.25.2011 | Business


Casting 'Too Big To Fail': Which Celebs Should Appear In The Movie Of The Financial Crisis? (PHOTOS)

Huffington Post | Ryan McCarthy and Grace Kiser | Posted 05.25.2011 | Business

It was just a matter of time before Hollywood got its hooks into the financial crisis. HBO recently announced that it had bought the rights to And...

Financial Reform: "Too Small to Succeed"

Joseph A. Palermo | Posted 05.25.2011 | Business
Joseph A. Palermo

We need to understand that "regulatory capture" has become a way of life in Washington. The current reforms don't go nearly far enough.

Why the Finance Bill Won't Save Us

Robert Reich | Posted 05.25.2011 | Business
Robert Reich

The White House has jettisoned all measures in the finance bill that would change the industry's structure -- opting instead for more regulations. But regulations don't work if it's the underlying structure that got us into trouble in the first place.

Obama And Geithner Have A 'Man-Crush' On Each Other: New York Magazine

Huffington Post | Ryan McCarthy | Posted 05.25.2011 | Business

Embattled Treasury Secretary Tim Geithner looms large in John Heilemann's New York magazine piece detailing the Obama administration's increasingly st...

What Would You Ask Tim Geithner If You Had the Chance?

Richard (RJ) Eskow | Posted 05.25.2011 | Business
Richard (RJ) Eskow

Whatever the reasons, the Geithner Treasury Department has suddenly come out swinging. They're pugilists in pinstripes now. But while the rhetoric's encouraging, Geithner's record is cloudy at best.

Shahien Nasiripour

Top Fed Official Says Megabanks Need To Shrink Or Crises Will Keep Occurring | Shahien Nasiripour | Posted 05.25.2011 | Business

The U.S. financial system is tilted in favor of the biggest banks, compromising the "very foundation of the economic system" and putting the nation at...

Shahien Nasiripour

Key Senate Republicans Split On Financial Reform Plan | Shahien Nasiripour | Posted 05.25.2011 | Business

Two Republicans on the Senate Banking Committee presented starkly different messages Wednesday on a key provision in the financial reform bill making ...

Bye-Bye to Bernanke's 'Insidious Banks': End 'Too Big to Fail' in Two Easy Steps

L. Randall Wray | Posted 05.25.2011 | Business
L. Randall Wray

If government had allowed markets to operate as Bear and Lehman went down, all of the big financial institutions would also have collapsed. As Bernanke now apparently realizes, that would have been a good thing.

How The Dodd Bill Could Affect Big Banks

Huffington Post | Ryan McCarthy | Posted 05.25.2011 | Business

The Dodd bill raced out of the Senate Banking Committee last night but, even in its current incarnation, it's a bit unclear how it might affect large ...

Financial Reform Proposals By The Obama Administration Ignore 'Too Big To Fail': Simon Johnson | Simon Johnson | Posted 05.25.2011 | Business

We agree completely with the administration's approach -- actually, with Elizabeth Warren's approach -- to consumer protection. (We make this clear i...

Simon Johnson: 'Too Big To Fail' Banks Will Precipitate Another Meltdown | James Pressley | Posted 05.25.2011 | Business

[Alan] Greenspan the bank buster crops up near the end of "13 Bankers," Simon Johnson and James Kwak's reasoned look at how Wall Street became what th...

Sunday Roundup

Arianna Huffington | Posted 05.25.2011 | Politics
Arianna Huffington

This week, after months of intense lobbying from corporate interests, the Senate passed a financial reform bill that is that D.C. specialty: "reform" that's been watered down within an inch of its life. Yes, it will create a much-needed Consumer Financial Protection Agency and requires an audit of the Fed. But it doesn't end "too big to fail" banks, doesn't create a 21st century Glass-Steagall firewall, and leaves open dangerous loopholes in the regulation of derivatives. And we can expect more loopholes to be inserted as the bill heads to conference committee. In public, the big banks groused. In private, they counted their record profits, watched their stocks go up after the Senate vote, and agreed that the $1.4 million a day the finance industry spent lobbying Congress -- including putting 70 former members of Congress and 940 former federal employees on its lobbying payroll -- was money well spent.

Too Big to Fail? Amidst Fiscal Crisis, Governments Must Take Dramatic Actions

Steve Rohleder | Posted 05.25.2011 | Business
Steve Rohleder

When recovery does come lawmakers must avoid the temptation to slip back into the old ways of doing business. They must focus on building an operation that can be sustained in any economic environment.

Six Key Fights for Wall Street Reform's Next Phase

Zach Carter | Posted 05.25.2011 | Business
Zach Carter

Thursday night's passage of Wall Street reform is an event to be celebrated, but several key issues remain in play as the House and Senate iron out differences between their respective versions of the legislation.