With venture capitalists pouring money into start-ups, the industry has been thriving since 2009. Many have crossed $1Billion-mark but have shied away from going public, raising concerns that many such huge startups may indeed be over-valued.
Living Wills of Too Big To Fail Banks
Banks have always remained too big to fail but their systemic risk became the topic of debates after the 2008 financial crisis. Living wills are a part of the post-2008 reforms to ensure that the risk does not spread to other sections of the financial system.
Why The Volcker Rule remains debatable in the Dodd-Frank Act?
Volcker Rule is a temporary solution to a permanent problem of ‘too big to fail’. If Volcker Rule really aims to address the issues of 2008 financial crisis, it should eliminate the issue of ‘too big to fail’ because as long as large firms exist, they will continue to attract federal support during any future crisis, despite all the adherence to the strict rules in the Dodd-Frank rulebook.
The ‘Missing Links’ in Dodd-Frank
With many complexities and delays, the promise made by Dodd-Frank is yet to be delivered. The above-mentioned rules are only three rules of the 400 ones that make up the Dodd-Frank Act. Here are the missing links of the Dodd-Frank Law.