The 2008 Financial Crisis Explained
Civics 101
00:00
Dodd-Frank and the Bankruptcy Reforms
The long, slow bankruptcy process for Lehman Brothers proved to the government that the system is not designed to handle the disintegration of a giant multi-billion dollar multinational company. When something that giant and interconnected fails, as we've seen, it has the potential to take the whole system down with it. So now the government says, you know what? You actually can fail, but you have to have a plan for how to do it without ruining everyone's lives. In fact, these companies all have to submit on a regular basis plans for how they could be unwound.
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