The Wall Street Journal reports that Special Inspector General Christy Romero of TARP has issued a warning about complacency and the continued overhang of Too Big to Fail. I look forward to reading the full report. We've written about the issues in the Journal article, and particularly about the research done by the Dallas Fed, which we discuss in the post linked to above. Interested readers should also take views of experts from across the pond, namely those of Lord Adair Turner, which we've also written about.
As a "comprehensive" reform of the financial system, Dodd-Frank is proving an abject failure, and it hasn't even been implemented yet. The risks in the global banking system, which inextricably includes the shadow banking system, are still enormous, despite some of the window dressing shown in recent mega-bank earnings reports.
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