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The Dodd-Frank financial regulatory reform bill that the Democrats passed last year didn't take an aggressive approach to fixing the too-big-and-interconnected-to-fail problem that necessitated the bank bailouts. The Senate rejected an amendment to the bill that would have broke up the biggest banks and, instead, created a "Systemic Risk Council" to determine which banks are too big and interconnected and make them follow tougher capital and leveraging requirements. It's supposed to keep the giant finance companies on a tight leash and avoid the shocks to the financial markets that would be caused by restricting the growth of a Goldman Sachs or Bank of America.

But it's not guaranteed to work, and I'd say the latest comments from Tim Geither, who is going to chair the council, do not inspire much confidence:

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