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Then welcome back too big to fail on Friday to more financial firms were added to the list meaning taxpayers could be on the hook for more bailouts but the purpose of the Dodd-Frank act.
-- back in 2010 was too.
Rein in firms that led to the financial crisis and ultimately prevent another too big to fail.
So is this legislation working or.
Our our financial institutions and taxpayers still at risk joining us now is former chairman of the FDIC and author of the book senseless panic.
How Washington failed America William Isaac bill nice to see this morning welcome to the show.
Thank you thank you good to be with you we all heard about Dodd-Frank is an effort to protect us from ever having to worry about these big bailouts again did it work.
And -- dad frank was basically an effort by members of the congress who voted for TARP to protect themselves in the election.
I don't think it was a serious effort at reform.
It it -- -- 500 pages of new statutory provisions in probably 220000.
Of regulations on top of the community banks it it's it's going to lead to more concentration.
In the banking system.
More more and more of our banking system's going to be in fewer and fewer hands.
And it's gonna really hurt the community banking sector which is or all the small business loans -- -- not all of the most movement most of them.
I don't think Dodd-Frank it's effective at all I think it's it's -- -- and an entirely unnecessary.
And one of the things it was meant to prevent was sort of be picking winners and losers right which is -- you know.
This large bank BankAmerica Wells Fargo Citigroup of these other large institutions that they're not free from being allowed to fail.
In the future but has that happened or has that occurred under Dodd-Frank.
Know who we we really needed.
Serious regulatory reform.
And Stan Dodd-Frank did none of that we need to fix a regulatory system which is way too politicized.
And and and spread out over way too many agencies we needed -- some consolidation of the regulators we needed to have stronger more effective regulation.
And -- and and we haven't done that we haven't brought market discipline to bear on large financial institutions we have more.
-- assets of the the banking system held and fewer hands the five largest.
Banks in the in the nation -- control over 50% of the banking assets.
When the next crisis comes.
And it winner will be another crisis because we haven't fixed problems that led to the last crisis when the next crisis comes and I don't know when that's going to be.
That there's no question -- to government.
Will bail out the largest banks we have we really have no choice because we have so much of the banking system in so few hands and you can't let them -- Mean it sounds like an outrage here -- exactly the type of thing we don't want to have happen is it because.
The administration is picking winners and losers or is it because of politicians.
At large generally have bankers in their back pocket bankroll their campaigns what is the issue here.
I'm not sure quite what -- issue is set -- I do think to Dodd-Frank.
What they wanted to do -- to get something passed anything passed as quickly as possible.
So that they could tell the public that they were sorry about TARP I was by the way I strongly opposed to TARP TARP was unnecessary -- did more harm than good.
And and and I think the politicians.
Wanted to atone themselves to the public so they they pushed through this bill which -- which wouldn't have prevented the last crisis won't prevent an excellent.
It really doesn't fix -- system and it surely doesn't end too big to fail we need a lot more reform a lot more sensible reform if we're going to truly end too big to fail.
Well sensible and congress are two words that go here.
Bill Isaac former chairman of the FDIC and the and the author of the new book senseless panic -- -- thanks so much for doing this but we appreciate it thank you -- coming up on this.
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