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|