Tag Archives: Washington DC

Too Big To Fail & Too Big To Jail

CAPITOL HILLBankruptcy and risk management experts discussed details regarding deficiencies of the Dodd-Frank financial reform law at a House Financial Services Oversight and Investigations Subcommittee hearing on Wednesday.
The core provision of the 2010 reform law was to keep the government from paying the bailout bill of major financial institutions when they fail.  However, federal government financial regulators still have discretion to subsidize large financial institutions if their failure threatens the economy.
Officials have publicly noted that the government’s ability to prosecute large institutions and their executives for financial crimes is hindered when institutions are treated as “too big to fail”.
Possible corrections discussed including shrinking the biggest institutions and reducing their risk to the financial system.  California Democrat Brad Sherman used the phrase “too big to fail and too big to jail”.  He said that no institution should be so large that its creditors believe they will be bailed out and its executives believe they are immune from the laws.
A second fix discussed included greatly limiting or all together doing away with regulators’ option of funding and restructuring a failing institution outside of bankruptcy.

USPS Announces 5-Day Delivery

USPMG-Pat Donahoe

USPMG Pat Donahoe

Other countries such as Canada, Sweden and Australia have reduced their Saturday services with a positive impact.

The bold move raised immediate legal questions in Washington as some lawmakers claim that Congressional approval is required.  Earlier attempts to change the current law have been met with objections and delays from Congress driving the USPS to make the change on their own.

Washington’s mandate, imposed solely  on the USPS, to pay over $5 billion a year for health benefits to future retirees remains a central point of contention and a driving factor to make radical change.

The decision to end Saturday delivery may be ultimately blocked by an act of Congress however, the announcement moves postal overhaul legislation to the forefront.  We’ll keep you posted on the latest as it happens.