Does Dodd-Frank Really Guarantee Big Banks?

In the first presidential debate, one of Jim Lehrer’s “hard hitting and incisive” questions was to ask Governor Romney whether he thought any current regulation was “excessive.” In the response, Romney said the following:

Dodd-Frank was passed. And it includes within it a number of provisions that I think has some unintended consequences that are harmful to the economy. One is it designates a number of banks as too big to fail, and they’re effectively guaranteed by the federal government. This is the biggest kiss that’s been given to — to New York banks I’ve ever seen. This is an enormous boon for them.

Is this explanation of the law correct? Not by a long shot


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