The financial reform bill would politicize the markets, only to reinforce ‘too big to fail,’ Rep. Paul Ryan (R-WI) told CNBC on Tuesday.
“It leaves it up to political appointees at the FDIC to decide what creditors get what,” he said. “It sort of goes down the crony road of capitalism, where the government is picking winners and losers in the marketplace and large established firms say ‘I want to be a winner and I’m gonna get myself at that position, and that comes at the expense of the smaller and medium sized firms in America.”
The bill would also add unnecessary layers of bureaucracies, he said.
“I really worry this thing is going down the path of politicizing how we sort out problems in our credit problems in the markets versus having something where the market places itself with real transparency,” he said.