Comment on Plan would end taxpayer bailouts for financial firms deemed 'too big to fail'

Plan would end taxpayer bailouts for financial firms deemed 'too big to fail'

Under the Obama administration's proposal, the cost of future government rescues of large bank holding companies and other complex financial firms would be paid by their surviving rivals. The cost of future government rescues of huge financial institutions would be paid by their surviving rivals while the troubled firms' management would be fired, their unsecured creditors would face losses and their shareholders could be wiped out, according to a proposal released Tuesday by the Obama administration and a key House panel chairman.

 

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