Poll Results: Do Regulators Really Have the Power to Let Banks Fail?

Do bank regulators have the power to let banks fail? Yes. They exercise this power on small- and medium-size banks seemingly without a second thought.

The two bigger questions are: do these agencies possess the testicular fortitude to let big banks fail; and do they possess the capability to deal with letting a big bank fail. Unfortunately, the answer to both of these questions appears to be No.

Despite their continuing bravado, rather than curbing the power and risk of the 'Too-Big-To-Fail' banks, the federal financial regulators have facilitated their becoming even bigger. These banks account for a greater share of the nation's financial assets than ever. They have escaped responsibility for their part in the global financial crisis. They continue to show disregard for regulations. And, now they have formed a Super PAC to declare 'war' on the few members of Congress that seek to maintain control over these financial behemoths.