Submitted By Todd on April 25th at 9:02am
Section 113 of the bill establishes a “Financial Stability Oversight Council,” charged with identifying firms that would “pose a threat to the financial security of the United States if they encounter “material financial distress.” These firms would be subject to enhanced regulation. However, such a designation would also signal to the marketplace that these firms are too important to be allowed to fail and, perversely, allow them to take on undue risk. As American Enterprise Institute scholar Peter Wallison wrote, “Designating large non-bank financial companies as too big to fail will be like creating Fannies and Freddies in every area of the economy.”We know what happens to bureaucracies that don't have to worry about where the next dollar is coming from. They turn into the Department of Motor Vehicles. Start doing this to our big corporations, and we turn into the Soviet Union. The liberal dream.