As i said theres an implicit too big to fail assumption that you can see in some large private Financial Institutions but certainly fannie mae and freddie mac. Lehman brothers for instance, very large new York Investment bank, the ceo of Lehman Brothers spent a year in the lead up to september of 2008 not preparing for bankruptcy and part of the reason is it you prepare for bankruptcy the government regular is might make at happen but he was hoping to get the bear stearns deal that bear stearns had gotten in march. Hank paulson didnt communicate that government always bailed out, they let Lehman Brothers go bankrupt on september 15th, 2008, and of course the rest is history. That is too big to fail. Before it was an implicit assumption. Now is the sort of regulatory policy. We have under doddfrank systemically important Financial Institutions and that is your credit cardjargon for too big to be allowed to fail. Certain institutions depending on size and assets are dumped important Financial Institutions. All the provisions arent bad but simply doing that reinforces the idea of too big to fail. The other thing doddfrank does is what im most concerned with, the Consumer Financial protection bureau, it sounds very nice. Look
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