In August, during an extraordinary appearance at the regional Federal Reserve Bank in Kansas City, Fed Chair spoke of the need to get past the time when any corporation is "too big to fail."
A few months ago, with memories of last year's financial meltdown fresh, that sentiment might have been as popular and unquestioned as love for sunshine and motherhood. But, having dodged a depression and with signs of improvement in the economy, support for new regulations that would allow large corporations to fail, Washington seems to be intent on doing nothing, meaning that corporate America, particularly investment firms and lenders, think that they can resume the same reckless practices that led to the September 2008 meltdown.
Former Fed Chairman Paul Volcker has made comments indicating that if Americans are concerned about this, the concern is warranted.
Calculated Risk quotes Volcker's cautionary note. Read the whole thing.
Here is the Bernanke interview. It was extremely impressive.
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