It is well documented that "too big to fail" banks and nonbanks enjoy a substantial taxpayer subsidy in the form of lower borrowing costs. As a result, TBTF firms have morphed into latter-day versions of Fannie Mae and Freddie Mac, absent the public mission those twins hide behind. Despite its rhetoric, Congress has not come to grips with the issue.

The truth is that we cannot allow our largest financial institutions, five of which control over 50% of the country's financial assets, to fail. The economic impact would be devastating.

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