The Exchange
  • Too Big to Fail: A Path Forward

    By John Bovenzi, Randall Guynn and Thomas Jackson

    The “too-big-to-fail” problem took center stage in 2008 when it became clear that both the bankruptcy process and financial regulators were ill-prepared to handle the failure of systemically important financial institutions (SIFIs). The Dodd-Frank Act was passed three years ago to provide the regulators with new powers to solve this problem. Yet, there’s no agreement on the basic issue of whether the Dodd-Frank Act ended too-big-to-fail or institutionalized it.

    Working as part of the Bipartisan Policy Center’s Financial Regulatory Reform Initiative we have studied this issue in detail and conclude that we are on the right path to ending too-big-to-fail and importantly doing so in a way that precludes government bailouts.

    Alternatives are needed

    The too-big-to-fail problem arises if the only choice policymakers have when a SIFI fails is between bailouts and collapse of the financial system. Policymakers need an alternative that allows a

    Read More »from Too Big to Fail: A Path Forward
  • It’s not exactly a Watergate moment (not yet, anyway), but the mounting controversies engulfing President Obama may mark the most difficult patch of his presidency to date. And they could eventually undermine the economy while rattling financial markets as well.

    Obama faces a trio of political problems that seem to be cresting at roughly the same time. The squabbling over last year’s attacks in Benghazi, Libya—and the conflicting ways Obama and his deputies characterized them afterward—seems to be intensifying rather than petering out, as new information becomes available. Then there’s the IRS, which recently acknowledged targeting conservative political groups for aggressive enforcement of tax laws, while failing to disclose what it was up to.

    The Justice Dept., meanwhile, still hasn’t explained why it secretly accessed the phone records of Associated Press journalists last year, in what appears to have been a heavy-handed effort to spy on reporters writing about U.S. counterterrorism

    Read More »from How the Obama Scandals Could Hurt Financial Markets
  • Fewer fast-food customers these days are asking “where’s the beef?”

    Instead, they want healthier items, local ingredients, a gourmet touch -- and as temperatures rise, a taste of outdoor cooking.

    Burger King rib sandwich: Image credit Burger King That’s why Burger King’s (BKW) summer menu this year will feature a rib sandwich clearly modeled after McDonald’s (MCD) famous McRib smashup. The item is brand new for Burger King, which plans to differentiate its pork pile by serving it on an "artisanal bun," while topping it with "sweet and tangy" barbecue sauce and "crispy bread and butter pickles." Other new items for Burger King: A barbecue chicken sandwich, Buffalo chicken strips and a variety of Oreo-flavored desserts.

    The summer menu, which Burger King will offer beginning May 21, also includes a few repeat items that proved popular last summer, such as sweet-potato fries, a pulled-pork sandwich and a Carolina-style barbecue Whopper. Typical prices for the sandwiches will be $3.49, or $5.59 for a combo with fries and a soda.

    Like the

    Read More »from Why Burger King Is Copying a McDonald’s Cult Classic
  • What’s Next for Corporate Philanthropy? Expertise, Not Money

    By Peter Scher

    Corporate philanthropy was once defined by the checks a company wrote to charities. But money, while critical, is only one of many assets a company can bring to bear – and often times, it is far less powerful than the skills and capabilities that companies can draw from their business operations and apply to solving big social challenges. That is why increasingly global corporations are rethinking their approach to corporate responsibility, evolving toward a model in which traditional donations are supplemented by innovative programs and initiatives that tap into the core strengths of the business.

    This trend is evident across industries and across critical social causes. When natural disasters strike, retailers and logistics companies are often among the most effective responders, leveraging their supply chain expertise to help governments (and sometimes independently) deliver food, water and temporary shelters in a matter of days. Technology and Internet companies are

    Read More »from What’s Next for Corporate Philanthropy? Expertise, Not Money

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