• Dodd-Frank is thus a recipe for more bailouts, as former Richmond Federal Reserve Bank President Jeffrey Lacker explained in a speech last year:
  • The authors of the [Dodd-Frank] Act envisioned the [Orderly Liquidation Authority, or] OLA as a way to put an end to taxpayer-funded bailouts.
  • However, the FDIC’s announced plans for implementation will likely encourage many creditors to expect they will benefit from the FDIC’s discretion, dampening their incentive to contain risk.
  • If expectations of support for the creditors of financially distressed institutions are widespread, regulators will likely feel forced to provide support to these short-term creditors to avoid the turbulence of disappointing expectations.

2017 0417- Financial Choice Act - 2017 - A Republican Proposal to Reform the Financial Regulatory System - 147p