Barney Frank’s Plan: A Permanent TARP?

James Gattuso / December 03, 2009

The House Financial Services Committee yesterday OK’d a key part of Barney Frank’s agenda for reform of the financial industry yesterday, voting to 31-27 to adopt his plan for so-called “too-big-to-fail” banks. The measure has been widely touted as providing a way to avoid future budget-busting bailouts of the industry.

That would be welcome. After a year of seemingly endless TARP bailouts and abuses, most taxpayers want to make sure that we never go down that road again. The problem: far from making future TARPs less likely, the Frank plan actually paves the road for more.
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