Dodd Frank Legislation, Too Big To Fail and Obamas View
JPMorgan Chase’s $2 billion blunder is throwing the spotlight on an awkward truth for President Barack Obama’s promise to end the era of big bank bailouts: The same institutions that were deemed “too big to fail” before the financial collapse are even bigger now.
Efforts to manage the size of such institutions were at the heart of the Dodd-Frank financial law passed in July 2010. But nearly two years later, many of the law’s regulations remain in limbo, as federal agencies muddle through long rule-making processes against stiff industry opposition.
“Keep in mind if we get all the rules that we proposed and were passed by Congress implemented into law, it should prevent this kind of stuff from happening,” Obama said on “The View” Tuesday.
Efforts to manage banks’ size were at the heart of Dodd-Frank, but the regulations remain in limbo.