Comment & Debate
“Pros and cons of Obama’s financial reform proposal”. By Edward L. Yingling. The Hill. May 2010 “It is reasonable in our capitalist system to allow institutions to fail because it ensures that bad actors are flushed out of the system. But it is also reasonable to ensure that the unwinding of such institutions is done in an orderly fashion that avoids chaos. The establishment of clear resolution policies stated in advance is necessary to achieve this objective.”
Timothy Geitner. “Financial reform with teeth.” The Washington Post. April 13, 2010: “if a major firm does mismanage itself into failure, the Senate bill gives the government the authority to wind down the firm with no exposure to the taxpayer. No more bailouts. Instead, we will have a bankruptcy-like regime where equityholders will be wiped out and the assets will be sold.”