banks, big bank regulation, Dodd Frank, Dodd-Frank Wall Street Reform Act, financial crisis, financial regulation
In his panel remarks on the future direction of financial regulation after the 2012 elections, Professor Lawrence Baxter argues that the age of large banks and “too big to fail” is destined to come to an end, but not through the traditional avenue of governmental oversight. Baxter starts by detailing the warning signs that illuminate the unsustainable nature of the current financial model and moves to a discussion on the deficiencies of modern banking regulations. Some hope for an end to giant banking behemoths, Baxter finally posits, lies in stricter market discipline and a realization that smaller, less-complex banks provide returns that larger banks simply cannot match. It follows that free-market principles will likely do more to reign in the size of banks than regulation.
Lawrence G. Baxter, Götterdämmerung, 18 North Carolina Banking Institute 91-103 (2014)