Bernanke Says 'Too Big To Fail' No Longer Exists

Law360, Washington (February 27, 2013, 2:32 PM EST) -- Federal Reserve Chairman Ben Bernanke on Wednesday blasted the belief that "too big to fail" banks still exist and would be saved by the U.S. government if they flounder, telling lawmakers that Dodd-Frank Act reforms eliminated the tools used to rescue drowning institutions during the 2008 financial crisis.

Although the economy could suffer if a large institution went under, Bernanke told members of the House Financial Services Committee that the Dodd-Frank Act forces those banks to internalize that risk rather than rely on another government bailout,...
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