How Would Proposed Regulatory Reforms Have Worked in the Current Crisis?

This obvious question is going almost completely unasked in reporting on the financial reform. For example, if we had the large banks pay policy in place last fall, does anyone think that we would have imposed special assessments on Citigroup, Bank of America and the rest to cover the cost of bailouts of AIG and Lehman? And, if it wouldn't have helped in the last crisis, why does anyone think this approach will help in the next one?

Dean Baker

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