Consider the following excerpt from this story:
The Treasury chief will present his proposed framework at a House Financial Services Committee hearing in Washington today. Under the new so-called rules of the road, the government would get powers to seize and wind down any financial company big enough to destabilize the banking system.
This makes it sound as if government can just step in before anything bad happens . . . so long as it determines that a particular company is “too big to fail.”
Anyone else think that this vast mandate is subject to vast abuse? And given the fact that it was government that countenanced the AIG bonuses through a provision in the stimulus package, who will regulate the regulators?