Time to take on 'too big to fail?'

Philadelphia Inquirer

What was the biggest shortcoming of 2010's massive Dodd-Frank financial reform - a flaw that still threatens the U.S. economy and all who rely on it?

One answer pops up with remarkable consistency from across the political spectrum: the belief that the law didn't actually solve the problem that some financial institutions are so large that they're "too big to fail."

Tea party favorites such as Sen. Rand Paul (R., Ky.) have warned against it, as have conservative pundits such as George Will and Peggy Noonan - making unusual common cause with liberals like former Labor Secretary Robert Reich, Columbia University economist Joseph Stiglitz, and former Sen. Ted Kaufman (D., Del.).

They share a concern that some institutions - especially four megabanks that now each count more than $1 trillion in assets - are still protected by an implicit guarantee that the government will step in to stop their collapse.

Time to take on 'too big to fail?' »