Despite serious efforts in the Dodd-Frank Act to mitigate too-big-to-fail, it remains a pernicious problem infecting our financial services industry. The Financial Stability Oversight Council (FSOC) is working already to reduce risk in systemically important financial companies, and the Federal Deposit Insurance Corporation is articulating plans for resolving extremely large bank failures. These are positive steps but more needs to be done. I have one suggestion: Give the FDIC the freedom to deviate from its least cost mandate when facilitating resolution of failed banks.
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