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30 Issues | The Democrats' Visions of 'Too Big To Fail'
Mike Konczal, a fellow at the Roosevelt Institute who blogs about economics at "Rortybomb," looks at how either democratic candidate would address the idea of "too big to fail" if elected president.
Contrary to the takes, Sanders's Daily News answers on financial reform and breaking up banks were clear and fine: https://t.co/nSs1VGbBDp
— Mike Konczal (@rortybomb) April 6, 2016Banks over $500 billion are required to have a "living will," a plan for bankruptcy that wouldn't take down whole system... (1/2) #30Issues
— Brian Lehrer Show (@BrianLehrer) April 13, 2016...Just this morning, the Federal Reserve said the 8 largest banks have insufficient wills, says @rortybomb. (2/2) #30Issues
— Brian Lehrer Show (@BrianLehrer) April 13, 2016Konczal said he thinks Dodd-Frank is doing a good job at containing a lot of the risks that come with the financial industry, but the real problem is enforcement.
He said there's still a fundamental question to be answered: do the regulators believe that the banks have learned and changed enough since 2008 to be able to survive a bankruptcy without causing a major panic?
Judging by this morning's assessment from the Federal Reserve, Konczal said there's reason to believe they have doubts.