For some time, I’ve been looking for a reasonable explanation as to how the “finanical crisis” came about and how some firms were labeled as “to big to fail”. Because of our orientation towards small business, we’ve simply not dealt alot in with the types of institutions these terms apply to. That said, we’re all dealing with the fallout from this process.
This article from DealBook does a great job of explaining what went wrong and how the regulatory system dealt with the implicaitons within the tools (laws and regulations) they had. Make sure you read the whole thing as it contains many “I never knew that!” moments.