Woulda coulda shoulda

Mark Thoma writes:

A big problem when the financial crisis hit was that regulators did not have the authority to force financial institutions in the shadow banking system into the type of resolution process the FDIC uses for banks in the traditional banking system. This solves that problem, and this is an important change.

Arnold Kling writes:

On the most important issue of "too big to fail," the legislation does exactly the wrong thing. It gives regulators discretion to use resolution...