One of the criticisms we most often hear about the Dodd-Frank Act is that it didn’t end too-big-to-fail policies, but rather enshrined them. In her new book, Bull By the Horns, former FDIC Chairman Shelia Bair argues that Treasury Secretary Timothy Geithner is to blame for that misconception because of a Treasury white paper that was "bailout advocates' dream."
American Banker’s Rob Blackwell recaps that section for us:
"Bair eventually succeeded in convincing lawmakers to explicitly ban bailouts in Dodd-Frank, but the damage was done. GOP lawmakers continue to use Geithner's original proposal to falsely claim that Dodd-Frank enshrines bailouts, she says."
For the full piece see "Seven Explosive Details from Bair's New Book" (may require subscription).