Bachus Counters Frank’s TBTF Paper

House Financial Services Committee Chairman Spencer Bachus released a report arguing how the Dodd-Frank Act didn't end too-big-to-fail policies, reports American Banker’s Victoria Finkle. This comes on the heels of Barney Frank's report arguing that it did.

Bachus argues the proof of the pudding is in the behavior of bank creditors:

"They continue to lend to the too-big-to-fail — and they continue to lend more cheaply to these giant firms than they do smaller, less risky banks — because they continue to believe that when push comes to shove, government officials will intervene, no matter how much they say they hate bailouts and want to protect the taxpayer," says the report

For the full piece see "Bachus Clashes with Frank Over 'Too Big to Fail'" (may require subscription).