“Prominent supporters of cracking down further on big banks offered a critical assessment Wednesday of whether the 2010 Dodd-Frank law ended the era of “too big to fail” banks while warning against enacting a House proposal to roll back a part of the law governing derivatives.
“Their comments came at a House Financial Services Committee hearing on whether the Wall Street reform law will prevent the possibility that large banks will be bailed out or given other forms of government support in the future if they run into trouble.
“The witness list was a who’s who of top Wall Street critics: Tom Hoenig, the vice chairman of the Federal Deposit Insurance Corporation, Dallas Fed President Richard Fisher, Richmond Fed President Jeffrey Lacker and former Federal Deposit Insurance Corp. Chairwoman Sheila Bair.
“Asked whether Dodd-Frank ended “too big to fail,” Fisher and Lacker both said no, while Bair and Hoenig said they believe the law provides the necessary tools to eventually end the phenomenon.”
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