UVA Law School Hosts Debate: "Are More Bailouts Inevitable?"
The JRCLS students at UVA Law School hosted a debate featuring UVA Dean Paul Mahoney and UVA alumni, Randall Guynn. Guynn heads the financial institutions practice group Davis Polk's and was a key player in advising the administration on financial regulation reform. The two speakers discussed whether the Dodd-Frank financial regulation reform law makes future bailouts more or less likely, or even inevitable.
The global financial panic in 2008 led to large financial bailouts of banks for fear of a systemic collapse of the financial markets. This has led to battle cries of never letting such bailouts happen again. This culminated with Congress introducing the Dodd-Frank Act which imposes higher limitations and restrictions on banks.
Guynn discussed that in theory a temporary infusion of cash and regulatory expertise of government can successfully restructure or sell off a distressed entity without hurting tax payers or the economy. The real problem is identifying when to do this, how to do this, and when it is appropriate.
A full video recording of the debate can be found here.
By Spencer Waldron
Posted: May 31, 2011