Financial Services Committee Hearings: Review of ‘Too Big to Fail’

The Oversight and Investigations Subcommittee held a hearing focusing on “Too Big to Fail.”  Oversight and Investigation Subcommittee Chairman Patrick McHenry (R-NC) said the following at the hearing: “The fact is that Dodd-Frank did not end ‘Too Big to Fail,’ but instead enshrined it.  Title II of Dodd-Frank, which created the Orderly Liquidation Authority, made government guarantees for systemically important financial institutions explicit . . . and it is this explicit guarantee that not only provides an unfair advantage to the biggest and most powerful companies and institutions, but in doing so, has the potential to seriously distort our marketplace.”

See:  Memorandum on the Hearing: “Who Is Too Big to Fail: Does Title II of the Dodd-Frank Act Enshrine Taxpayer-Funded Bailouts?”
Testimonies:  Mr. David A. Skeel (Professor of Corporate Law, University of Pennsylvania Law School), Dr. John B. Taylor (Professor of Economics, Stanford University), Mr. Joshua Rosner (Managing Director, Graham Fisher & Co.), and Mr. Michael Krimminger (Partner, Cleary Gottlieb).