As I have noted in my previous comments, Dodd-Frank is attempting to make sure that too-big-to-fail banks will not bring on another economic disaster. In doing so, they are strangling the economy with regulations.
Monetary policy has been set up merely to accommodate this “too-big-to-fail” doctrine at the expense of business who cannot or will not access loans. Banks who have received government treatment get low interest rates and safe government bond investments to bolster earnings. Why would banks not play this spread rather than make risky loans to business? Especially with government agencies looking over their shoulder, suggesting that risky business loans are taboo?
