Too Big To Fail Redux (or) There Really IS A Regulation Fairy!!!

26 10 2009

If my memory serves me I seem to recall writing a little ramble nearly a year ago that suggested that it should be illegal for any company to become ” too big to fail”.  I might have even suggested if a company deemed “too big to fail” requires government rescue it must  either be divided into two or more smaller economically non-critical corporations or, if breaking it up is impossible, such a super critical company must, obviously, become a part of the federal government.

Well lookee lookee at what the regulation fairy brought us this morning!!

Representative Barney Frank, the chairman of the House Financial Services Committee, would introduce legislation as early as this week. The measure would make it easier for the government to seize control of troubled financial institutions, throw out management, wipe out the shareholders and change the terms of existing loans held by the institution.

Well would you just look at that?!  Kick the Republicans out and a smidgen of common sense regulation takes root 8 months later!  I wonder when the Single Payer Health Care fairy will make her rounds?

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3 responses

27 10 2009
Sabio Lantz

Pixie dust ain’t benign, you can choke to death on that stuff.

27 10 2009
SuperJesus

Yeah, because the global financial crisis raining down on everyone from unregulated “capitalism” now is so good for us.

I’m all for real capitalism where true risk/reward dynamics are at play, but these companies are not operating in a capitalistic way since they get all the benefit for taking massive risks but all of the downside falls on the public’s shoulders.

Regulation is rarely perfect but it’s better than this flavor of Republican pixie dust bullshit.

27 10 2009
Sabio Lantz

Well, I don’t like the regs supported by republicans either. They are corporate welfarists.

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