Chris Dodd's Carve-outs for Cronies | Mark A. Calabria | Cato Institute: Commentary

Chris Dodd's Carve-outs for Cronies | Mark A. Calabria | Cato Institute: Commentary: "The Senate bill, sponsored by Democrat Chris Dodd, claims to subject all 'too big to fail' institutions to greater federal supervision, but in fact it only mandates such regulation for bank-holding companies. Regulators would have to make a case-by-case decision on whether to apply it to other financial companies.

That's no minor oversight, because insurance companies, like AIG, tend to have thrift charters rather than bank charters. So, as the bill stands now, AIG and other insurers that accepted massive bailout funds, such as The Hartford, would not be automatically covered."