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Showing posts from November 2, 2009

Tackling the 'too big to fail' firms

Business Times - 03 Nov 2009


Tackling the 'too big to fail' firms

Bill grants Washington sweeping new powers to police giants, but would regulators be able to regulate themselves?

By LEON HADAR
WASHINGTON CORRESPONDENT

IT'S official! The recession is over. The American economy grew at a 3.5 per cent annual rate in the third quarter, bringing to an end a series of declines over four quarters that produced the Great Recession that started in December 2007 and is considered to be the most devastating downturn since the Great Depression of the 1930s.

But as officials and lawmakers in Washington study the latest better-than-expected gross domestic product numbers released last Thursday, they are focusing their attention on finding ways to prevent another economic crisis by dealing with some of the fundamental problems that led to the financial meltdown and the ensuing severe recession.

Hence, the head of a key House committee unveiled legislation last Wednesday that would grant …