"The Wall Street Journal
Bair Says Bill Will End 'Too Big to Fail'
BY JESSICA HOLZER
Federal Deposit Insurance Corp. Chairman Sheila Bair said bank
regulators would have the tools they need to banish "too big to fail"
institutions from the financial landscape once a Wall Street overhaul
bill becomes law.
In the first installment of The Big Interview, a WSJ.com video
interview that will be posted at 10 a.m. EDT Friday, Ms. Bair said
that new powers allowing regulators to seize and liquidate failing
institutions would act like a threat hovering over the financial
industry, deterring firms from growing to large or reckless.
"This is a kind of a nuclear bomb that you hope you never have to
use," Ms. Bair said. "The fact that it's there, I think, is going to
be important. And if we have to use it, we will."
The bill pending in Congress would empower the heads of the FDIC, the
Federal Reserve and the Treasury to wind down a financial firm other
than a bank, a provision intended to give the government a choice
other than the messy bankruptcy of Lehman Brothers and the
controversial rescue of American International Group. The FDIC, with
its long history of resolving failed banks, would act as receiver,
selling off the assets. . . ."
Will they repeal Gramm-Leach-Bliley? I don't think so. But it's just
going to be more of the same until they do.
What about 'too big to fail' Government Motors and the 'too big to
fail' government takeover of health insurance?
Democrats and other extremist, regressive, corporatist left-wing
fascists are still the dumbest animals on the planet.
Hey, if it closes the loophole so the Clintonistas and the Obamites
cannot destroy the economy by bribing their dumbassed, urban street
trash voters with home loans they can't even come close to paying,
then I'm all for getting rid of GLB.