One year ago, the U.S. government and all of us were over a big, ugly barrel. Bail out the mega banks, or they would crash and take the whole economy down with them. “Too big to fail.”
And so we bailed and bailed and bailed. Billions and billions in taxpayers’ dollars to save the banks that had driven the crisis. And the cry went up: “Never again.”
Well, now the tools for “never again” are on the table, and there’s a huge debate over whether they will work, or bring Wall Street running back for more.
This hour, On Point: How to fix “too big to fail” on Wall Street.
Joining us in our studio is Kenneth Rogoff, professor of economics and public policy at Harvard University. His new book is “This Time Is Different: Eight Centuries of Financial Folly.”
Also from Washington we’re joined by Rep. Brad Sherman (D-CA), member of the House Financial Services Committee. He calls the Financial Stability Improvement Act of 2009 “TARP on steroids.”