A recent poll by American Banker revealed that 57 percent of Americans say that the 2010 Dodd-Frank Act did not give regulators enough control to let “too big to fail” financial institutions collapse.
The results suggest that the American public is convinced that the institutions are permanent and that the financial reform intended by the legislation is too lenient to prevent total economic collapse should the banks fail again in the future, The Huffington Post reports.
Legislators and policymakers across the country echoed the sentiment, saying that the threat of “too big to fail” is real and remains a risk to the U.S. economy.
In March, the Dallas Federal Reserve Bank released a report citing “too big to fail” banks as the reason for the public’s loss of confidence in American capitalism. The report also claimed that many of the institutions that were supposed to have been scaled down are still much too large and pose a serious threat to the financial system.
“[V]irtually nobody has been punished or held accountable for their roles in the financial crisis,” the report said, according to The Huffington Post. “[Too big to fail] undermines equal treatment, reinforcing the perception of a system tilted in favor of the rich and powerful.”