OTC MARKET NEWS Powered By Quantifi

AEI: 'Too Big To Fail' Banks Are Choking Small Business  

March 5, 2014
John Morgan, MoneyNews

The Dodd-Frank financial reform law has not only broadened Washington’s “too big to fail” safety net for Wall Street, but it also is choking off lending to small businesses by killing community banks, according to blogger James Pethokoukis of the American Enterprise Institute (AEI).

In an AEI column, he noted the law explicitly permits bank bailouts by the government, to be financed by taxes on surviving bank and potentially by taxpayers.

“Indeed, megabanks have responded to Dodd-Frank’s TBTF (too big to fail) incentives by
getting bigger, the industry more concentrated."

Read more: MoneyNews

Comments are closed on this post.


Submit your email to receive our newsletter