by By John Mauldin and Barry Ritholtz, Testosterone Pit.com:
I am often on a panel or at dinner with Barry Ritholtz (The Big Picture), and he will remark, “I am going to have to rethink my position – I agree with John, and that can’t be right.” While I don’t share that bias, I do agree with Barry about his recent take on legislation – which might actually pass – that would deal with too-big-to-fail banks in the US. Barry’s latest take on that issue is this week’s Outside the Box.
I have not written all that much on the topic lately, other than to say that Dodd-Frank was designed by big banks for big banks – the best legislation they could buy, I have been very critical of allowing too-big-to-fail banks to put taxpayers at risk, and I don’t think it should ever be allowed to happen again. Dodd-Frank did not deal with that.
There is bipartisan legislation making its way through Congress that is a huge step in the right direction. The Senate passed it 99-0. Barry explains it below. Both as a taxpayer and an investor, you should be paying attention. And as a voter, call or write your Representative and tell him or her to vote in favor. We will find out who is on the big banks’ side on this one.
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