re: #3 Jayleia

And here’s the first problem with it

“Assuming that the institution isn’t in truly dire shape and hasn’t misstated its assets and liabilities (as firms essentially did before the financial crisis)”

OK, so assuming TBTF banks are both honest AND correct about the valuations of their assets in the future, we might be onto something…if you are not laughing hysterically at that concept of them being either honest OR correct, I suggest you take time to review how we got into that mess.

Actually, the article does talk about that concern and its why Toomey’s solution is only a partial one. It’s also why I disagree with the senator about the rest of Dodd-Frank, as it is my opinion that lumbering TBTF banks with regulations is the only way to prevent a disaster. I’d rather the Congress did more regulating and less grandstanding, but I don’t think that likely so having the bureaucracy manage risk is the only option.

Risk Management is not a job bureaucrats are best at, but they’re all we’ve got for the time being.