Financial regulatory systems fragmented and unprepared for next crisis, says bailout expert
The “No More ‘Too Big to Fail’” rallying cry is unrealistic, says Cheryl Block, JD, federal taxation, budget and bailout expert and professor of law at Washington University in St. Louis. “When the next really big economic crisis arises, Congress is unlikely to stick to its ‘no bailout’ pledge,” she says.
Businesses still benefitting from hidden federal bailouts
The federal financial bailouts of the last few years received tremendous publicity, but multiple sources of “hidden bailouts” eluded notice, says Cheryl D. Block, JD, law professor at Washington University in St. Louis. Some hidden sources of federal financial rescue include new, expanded tax credits, the more liberal IRS interpretation of regulations, and “off-off budget” bailouts by quasi-governmental agencies such as the Federal Reserve Bank, according to research by Block.