Bernanke is a voting member of the newly-created Financial Stability Oversight Council. One of its legislated duties is “…to promote market discipline, by eliminating expectations on the part of shareholders, creditors, and counterparties of such companies that the Government will shield them from losses in the event of failure…” Got that? The FSOC is supposed to be making it known, through word and deed presumably, that there will be no more bailouts. Is the FSOC going to inform Americans that the FDIC insurance fund can’t possibly insure all their bank accounts? And that the Government won’t be there to shield … Continue reading Swap Lines Contradict Dodd-Frank