{mosads}”In order for such a mechanism to exist fundamental legislative changes would be require. Any fair reading of the mood of the American public and the appetite of Congress suggests that there is absolutely no support for more bank bailouts,” he wrote. “The fact that you have come to a contrary conclusion reinforces my recommendation that you focus on your core business.”
In the report, issued Tuesday, S&P said the government has a “long track record” of supporting the banking system, and that, given the right institutions and the right sort of crisis, “future extraordinary government support is still possible.”
A common critique of the Wall Street overhaul from Republicans has been that it still enables “too big to fail” by designating certain firms as important to the entire financial system. Such a designation brings with it the implicit backing of the government, they argue.
But proponents, including Frank, have vehemently opposed that notion, arguing that Dodd-Frank explicitly rules out future bailouts. Frank has also pointed out on multiple occasions that financial firms are trying to not be designated as systemically significant, which runs counter to any assertion that firms become “too big to fail” by earning the title.