Too Big to Fail Survives Again
Colin Barr, Fortune
Zombie banks, take comfort: The zombie regulatory system lives on.The financial reform legislation hammered out Friday morning on Capitol Hill closes many of the loopholes that led to the last crisis. But it stops well short of breaking the bad habit that has fed outlandish risk-taking for almost three decades: too big to fail.How will they handle the next crisis?The reform bill does take strides toward a safer financial system. It will create a process for liquidating troubled financial firms, making another AIG (AIG) less likely. It will boost oversight and transparency in the derivatives...