Tom Keene's EconoChat

摘要

What have we learned from TARP and "too big to fail"? TARP was really important in giving the markets confidence so that the banks would be able to deal with one another. But the side effect was that it sent the message that the government was going to backstop these largest financial institutions no matter how big their screw-ups, no matter how big their mistakes, no matter how reckless their decisions were. That's TARP's legacy: the sense that the government will bail out these banks. Will Dodd-Frank help us prevent the next big financial crisis? There are some good things in Dodd-Frank that will be helpful in a one-off situation. Increased capital requirements will be helpful. But the problem is so vast that this tinkering around the edges is not nearly enough.