Every action taken by federal regulators against large, systemically-important financial firms — those commonly referred to as “too big to fail” — will be made public, House Financial Services Committee Chairman Barney Frank told the Huffington Post.
This is a sharp break from current practice.
Currently, federal banking regulators can secretly get banks to modify their behavior and practices. For example, regulators can tell a bank to stop a particular activity, beef up lending standards, or increase the amount of capital they keep to protect against potential losses —
all hidden from public scrutiny.