For my first argument paper I decided to take on a topic that directly correlates with my future. A common topic in class discussion and nation wide is the recent government intervention in the financial sector regarding the “too big to fail” companies. I wanted to look further into the role of the SEC and policies such as the Dodd-Frank Wall Street Reform and Consumer Protection Act. Using Google Scholar, I was able to gather some more opinions surrounding these issues.
In searching about the Dodd-Frank Act, as it is abbreviated, I came across a piece that is very strongly against this act of government. The abstract, written by Arthur E. Wilmarth Jr at George Washington University Law School, recognizes some improvements from Dodd-Frank but says the root of the act has not brought an end to the “too big to fail” era. Specifically, the author insists that the act does not regulate mergers and acquisitions enough and this is the reason for companies becoming too big to fail.
Backtracking using the cited references, I came across a piece written by a Professor of Law at the University of Minnesota, Brett H. McDonnell. In his piece, McDonnell explores the politics of the recent financial crisis and specifically with too big to fail institutions. Brett’s article delves into the politics of large financial institutions that have immense lobbying power and even goes onto speak about the prestige that comes with running an institution and those benefits (being hired as government regulators). In short the article divides the issue of TBTF into two sides; economics and politics. This is exactly the kind of information I am looking for to use in my paper.
If I can continue to find other sources regarding both the economics and politics of this amounting issue, I will hopefully be able to arrive at some sort of conclusion or clear approach to government in the role of financial institutions. This will be critical to the future success of our economy.