October 15, 2012
WASHINGTON, DC – Congressman Barney Frank today released an analysis of the provisions in the Wall Street Reform and Consumer Protection Act which address the issue of financial institutions which were thought to be “too big to fail.” The research was conducted at Mr. Frank’s request by the minority staff of the House Financial Services Committee.
The paper is presented in response to assertions that the Wall Street reform law perpetuates “too big to fail” and taxpayer bailouts of large financial institutions. It describes how in fact the law provides for the orderly dissolution of failing institutions in order to protect the broader economy. By explaining how the law creates a process for dissolving failing firms, the analysis provides the framework for an informed discussion of this topic.