A protester in March of 2008 framed the question that Barney Frank, chairman of the House Financial Services Committee, and Treasury Secretary Timothy F. Geithner will try to answer this week with proposals to tighten regulation.
New York Times - WASHINGTON — Congress and the Obama administration are about to take up one of the most fundamental issues stemming from the near collapse of the financial system last year — how to deal with institutions that are so big that the government has no choice but to rescue them when they get in trouble. The White House plan as outlined so far would already make it much more costly to be a large financial company whose failure would put the financial system and the economy at risk. It would force such institutions to hold more money in reserve and make it harder for them to borrow too heavily against their assets.
Setting up the equivalent of living wills for corporations, that plan would require that they come up with their own procedure to be disentangled in the event of a crisis, a plan that administration officials say ought to be made public in advance.
Monday, October 26, 2009
- Forbes Magazine Plans More Layoffs
- Chinese Drywall Found to Differ Chemically
- Gloom Spreads on Economy, but GOP Doesn't Gain
- U.S. Considers Reining In ‘Too Big to Fail’ Instit...
- Still on the Job, but Making Only Half As Much
- Bloomberg Buys BusinessWeek From McGraw-Hill
- E. Coli Path Shows Flaws in Beef Inspection
- Mining Companies Hit Wall on Mountaintop Blasting
- Lost Jobs May Never Return
- Profits for Buyout Firms as Company Debt Soared
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