Saturday, September 19, 2009
Black: Obama Has Rebranded Too-Big-To-Fails As "Systemically Important”. But They Should Be Called "Systemically Dangerous Institutions (SDIs)"
In an interview last week, William K. Black hit the nail on the head:
[Interviewer]: If you were advising President Obama on financial reform, what would your first priority be?
Mr. Black: Containing, and beginning to end, “too big to fail.” Financial institutions that are too big to fail are not, as the administration has rebranded them: “systemically important” — they are systemically dangerous institutions (SDIs). First, they should not be allowed to grow. Second, their managements should be removed if they were mismanaged. Third, they should be shrunk to the point that they no longer endanger the global economy.