Too Big to Fail, or Succeed
Although President Obama claims he supports free markets, his plan for future regulation of the financial system focuses on stability vs. innovation, competition and change. The plan would authorize the Federal Reserve to set special requirements for institutions "whose combination of size, leverage and interconnectedness could pose a threat to financial stability if it failed" and the Treasury to "stabilize" it. In other words, the plan would eliminate risk – the core strength of the U.S. economy – for certain large institutions, devastating the smaller competition as a result.
Source: WSJ.com | June 19, 2009
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