Treasury Secretary Timothy Geithner is still trying to convince Congress to pass legislation to deal with “too big to fail” financial institutions before they get to the point of collapse. Law Professor Cornelius Hurley, director of the Morin Center for Banking and Financial Law and a former counsel to the Fed Board of Governors, says it’s about time.
“The answer to the ‘too big to fail’ high-wire act does not lie in removing the government’s capacity to cope with these institutions in a crisis. It lies in removing the financial incentives for becoming TBTF in the first instance.”
Contact Cornelius Hurley, 617-353-5427, firstname.lastname@example.org