Advertisement
YOU ARE HERE: LAT HomeCollections

Letters

Overseeing firms 'too big to fail'

October 05, 2008

Has anyone addressed policy implications of firms becoming "too big to fail" ("Bailout could aid firms that buy troubled banks," Sept. 29.)? It appears that a threshold exists, beyond which a firm can now expect government intervention in the event of failure.

This will only encourage more reckless risk-taking, since the government will provide a safety net of credit. The taxpayer appears to be held hostage: There seems to be no option but to support a bailout to avoid a far greater calamity.

Should an enhanced level of governmental oversight kick in once the "too big to fail" threshold is reached?

Mark M. Daichendt

Macungie, Pa.

Advertisement
Los Angeles Times Articles
|
|
|