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The Dilemma of Bailouts
By Roy C. Smith
This article appeared in the Summer 2011 issue of The Independent Review


Abstract

Ever since the bailout of Continental Illinois Bank in 1984, bank bailouts have been an unpopular device invoked to protect the financial system from risks posed by troubled banks deemed “too big to fail.” Although the Dodd-Frank Act prohibits taxpayer-funded bailouts, it leaves the financial system exposed to meltdowns and promotes the shifting of risk from large “systemically important” financial firms to smaller, less-regulated ones.



Other Independent Review articles by Roy C. Smith
    Summer 2013   The Agony of the Euro
    Summer 2007   Enterprise Capital in Emerging Markets
    Summer 2006   Four Years After Enron: Assessing the Financial-Market Regulatory Cleanup



Volume 16 Number 1
Summer 2011

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