"Resolution Authority ASAP"
Liberals will probably find a fair amount to disagree with in these remarks from Ben Bernanke, especially the lead elements that involve vague assertions about the “economic benefit of multi-function, international (financial) firms.” That said, there’s no reason whatsoever to disagree with this:
Both in answering the question and in his prepared text, Mr. Bernanke again beseeched Congress to act soon to give regulators “resolution authority” to cope with the imminent collapse of a big financial firm other than a bank, and to address other vulnerabilities in the regulatory regime exposed during the crisis.
There’s plenty of room for disagreement as to whether an approach to “too big to fail” that’s centered on this resolution authority point is sufficient. But I think everyone can agree that it’s necessary. And unlike other elements of regulatory reform, this is something that at least might come into play during the current crisis if things get worse. I see no reason why congress couldn’t or shouldn’t move quickly on this point irrespective of controversy over the rest.