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Financial Risk, Regulation, and Resolution: What Should Congresss Do?

Recorded on April 29, 2009

Location: The Heritage Foundation's Lehrman Auditorium

In the wake of the financial crisis that rocked the U.S. economy, the Obama Administration has proposed regulatory changes intended to address the problem of firms that are considered "too big to fail" and other forms of systemic risk. Among the proposed changes are the expansion of the Federal government's "resolution authority" to seize and liquidate or reorganize financial institutions whose failure presents undue risks as well as the establishment of a "systemic regulator" to regulate the activities of firms considered too big to fail. But will such steps actually improve the financial system? Or, could the additional powers to be granted to Washington regulators actually make the situation worse?