How does the financial reform law end too-big-to-fail and how will

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it end taxpayer-funded bailouts?

[JuniperLea]

1. Great question!

I hope to see the answer posted here. You know, like in the good old days of DU when we came here for important information that effects us all!

Edited to say the unrec crew are already nipping at your ass, Sub... let's detract from what's important to ALL of us and be asshats to those who want to talk about what's important. How did I know?

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2. Man, I so miss those days. I wasn't much of a researcher and I'm still not.

But I sure miss those who were digging down into legislation like this and giving it the inside-out treatment.

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3. Kick. Is there ANYONE who can answer either one of, or both, of these

two questions?

Cheerleaders of the law?

Anyone?

[branders seine]

4. it is my understanding that the new law does nothing to end too-big-to-fail.

I heard an administration spokescreature say that it ends bailouts, but I'm not sure that is true.

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5. Perhaps that's why I can't seem to get this discussion going. Not even the bill's

cheerleaders will explain. They just say it's great without any backing it up.

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6. Kick. Hello? Anyone? n/t

[alc]

7. Dodd explained it pretty well

We don’t know ultimately how well the ideas we have incorporated will achieve the results we all desire. It will take the next economic crisis, as certainly will come, to determine whether or not the provisions of this bill will actually provide this generation or the next generation of regulators with the tools necessary to minimize the effects of that crisis when it happens.



In other words: they don't know.


It allows the government to dismantle a company before it takes down the economy. But it doesn't require that. They could decide a bailout would be better.

It provides some tools for regulators, but it doesn't require regulators to use them. The last/current crises would probably not be as bad if the SEC had used the tools they had. But they were negligent in their oversight, just like MMS with BP. I haven't seen anything requiring them to practice the oversight they are charged with. If anything, there are now more agencies with oversight authority which could lead to more agencies assuming someone else will do it and each agency having less visibility into the entire financial system. That will make it easier to get around oversight.

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8. Thank you. But I'm not really interested in what Dodd or Frank have to say. They

both take money from the financial sector and I see that as a conflict of interest. What I'm more interested in is DUer's opinions/analysis of the law, ESPECIALLY THOSE WHO HAVE BEEN AND CONTINUE TO CHEERLEAD THIS LAW.

But, really, thanks again for responding. :hi:

ETA: I do find it fascinating that the authors of the law don't know how it will work. VERY fascinating.

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9. Kick. Anyone? Anyone at all? n/t

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10. Kick. n/t

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11. Kick. n/t