Why the ‘Too Big to Fail’ Fight May Get a Revival

in In the News
July 8th, 2014

 

From  American Banker (subscription required)
By VICTORIA FINKLE
July 3, 2014

 

Last year’s push by some lawmakers to rein in the big banks may have lost steam, but an imminent GAO report and committee leadership changes could give the issue new life…

The legislative battle over reining in big banks’ implicit guarantee is suddenly poised for a comeback. The issue is expected to reemerge as the Government Accountability Office is said to be finalizing a report on whether big banks get a subsidy based on their size, and vocal critics of “too big to fail” — including Sen. Sherrod Brown, D-Ohio — stand to hold key leadership slots in next year’s Congress…

Expert quote:

“Jeb Hensarling could step into the shoes of David Vitter. Hensarling is the darling of the Tea Party, and the Tea Party is supposedly against big government and out-of-control corporations. It wouldn’t be an alliance that would require Hensarling to deviate from his philosophy at all.”…

 

Read the article at:  www.americanbanker.com (subscription required)