From
http://online.wsj.com/article/SB10001424052748704541004575011021604106924.html
"Barney Frank of Massachusetts, class of 1980 and chief protector of Fannie Mae, wrote the financial reform that would make too-big-to-fail the law for the largest banks. He has also pushed the mortgage foreclosure programs that have extended the housing recession by preventing home prices from finding a bottom."
By embracing "too big to fail", Democrats are providing taxpayer-funded insurance for the bad bets of big banks. Worse, they're institutionalizing the practice, an abandonment of moral hazard at the top of the financial services industry. If high-end players in financial services can't lose on their bad bets, real capitalism has been replaced by crony capitalism, with the Obama Administration coddling its fat cat banker buddies.
There is no better way to destroy the faith of the American people in their own government, to discredit the financial services industry, and to ruin the financial recovery. With these policies encouraging irresponsible investments by big banks, Democrats are abandoning moral hazard, and ensuring that disastrous financial speculation and boom and bust cycles will recur, dragging future economic recoveries back into recession and depression.
Millions of small American businesses, jobs, and financial futures will be ruined by these policies. Among other things, small banks, which will not be protected for their bad bets, cannot compete against the financial behemoths who have the government bailout protection. Make no mistake about it: with these policies, the Democrats are ensuring future financial holocausts.
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