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Yellen testimony shows too-big-to-fail is still a very big problem 

July 15, 2014
Chris Matthews, Fortune

In testimony before Congress on Tuesday, Fed Chair Janet Yellen takes flak for failing to downsize big banks.

Elizabeth Warren has always been a fierce critic of big banks. But the Massachusetts Senator brought her calls for action against the largest financial institutions to a new level on Tuesday, when she argued in a Senate hearing featuring Federal Reserve Chair Janet Yellen that the central bank should use authority already granted it by Dodd-Frank legislation to force big banks to slim down.

For the past three years, the largest banks and systemically important non-financial firms have been required under Dodd-Frank to submit blueprints to the Federal Reserve and the FDIC that show how the companies could quickly be unwound in a bankruptcy process that wouldn’t involve public bailouts and would avoid the collapse of the financial system.

Read More: Fortune

 
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