Overseeing firms ‘too big to fail’
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Has anyone addressed policy implications of firms becoming “too big to fail” (“Bailout could aid firms that buy troubled banks,” Sept. 29.)? It appears that a threshold exists, beyond which a firm can now expect government intervention in the event of failure.
This will only encourage more reckless risk-taking, since the government will provide a safety net of credit. The taxpayer appears to be held hostage: There seems to be no option but to support a bailout to avoid a far greater calamity.
Should an enhanced level of governmental oversight kick in once the “too big to fail” threshold is reached?
Mark M. Daichendt
Macungie, Pa.
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