A Dodd-Frank Watchdog Still Growls, on a Slightly Tighter Leash

The New York Times: At first glance, two events this week suggest that federal regulators are losing ground against “too big to fail” financial institutions.

The 2008 financial crisis revealed that both banks and financial firms that were not banks — like the American International Group — could pose a devastating risk to the financial system and the wider economy. Congress’s primary response came in 2010 with the passage of the Dodd-Frank reform law, a sweeping bill that gave regulators broad powers, including a powerful new tool. They could identify nonbanks that were “systemically important,” and then subject them to stricter regulation.

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