Elizabeth Warren Grills Bernanke on "Too Big to Fail" Policy
Inquiring minds are watching Bernanke squirm under pressure from Senator Elizabeth Warren who complains "Too Big To Fail" is now bigger than ever before.
Partial Transcript
Warren: These big financial institutions are getting cheaper borrowing to the tune of $83 billion in a single year, simply because people believe government would step in and bail them out. And, I'm just saying, if they're getting it, why aren't they paying for it?
Bernanke: I think we should get rid of it.
Warren: Alright. I'll ask the other question. You were here in July, and you said you commended Dodd-Frank for providing a blueprint to get rid of "Too Big to Fail". We've now understood this problem for nearly five years, so when are we going to get rid of "Too Big to Fail"?
Bernanke: Well, some of the you know uh as we've been discussing, some of these rules take time to develop. Uh, uh. ...."
It's safe to say Bernanke was not prepared for this line of questioning.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Disclaimer:The content on this site is provided as general information only and should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a position in any company or advertiser referenced above. Any action that you take as a result of information, analysis, or advertisement on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.