At a U.S. Senate hearing on a GAO report on the costs of expectations of
government support for banks should they go under, “discussion went far beyond
the report and delved into the current state of banking, the limits of the
Dodd-Frank Act and what should be done about banks that are simply too big to
manage,” according to The New York Times.[1] Six years after the massive credit freeze, a major question
hinged on whether some financial institutions were still too large, complex,
and interconnected to be liquidated in an orderly and containable manner should
they head under water.
[1] This
and all quotes in this essay are from Gretchen Morgenson, “Big Banks Still a Risk,” The
New York Times, August 3, 2014.
