Yet another hearing providing critics of the Dodd/Frank Act with a forum to contend that the law did not end the bailouts for too-big-to-fail firms. Congressman Ed Royce cited a recent study indicating larger financial institutions enjoyed an advantage in the cost of their funds, thus creating an incentive to be deemed as systemically important.
This hearing would be the final appearance of Federal Deposit Insurance Corporation Chairman Sheila Bair before the committee since her term was about to expire. She was the hearing’s only witness.
Chairman Bair disagreed with Royce noting that, in fact, larger institutions were downsizing. Most members did not engage on the issue, but continued their long-standing complaint that small financial institutions were discouraged from lending by overzealous regulators.