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Monday, October 26, 2009

Government Readies Plan to Seize “Too Big to Fail” Financial Companies

“Congress and the Obama administration are about to take up one of the most fundamental issues stemming from the near collapse of the financial system last year — how to deal with institutions that are so big that the government has no choice but to rescue them when they get in trouble. …The measure would make it easier for the government to seize control of troubled financial institutions, throw out management, wipe out the shareholders and change the terms of existing loans held by the institution. ” (New York Times, Monday)

What about when the government is too big?

FEE Timely Classic
“Too Big to Fail” by Michael Heberling

  • Sheldon Richman is the former editor of The Freeman and a contributor to The Concise Encyclopedia of Economics. He is the author of Separating School and State: How to Liberate America's Families and thousands of articles.