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Answer 1:
A. I agree that Dodd-Frank has been failure since there are some loopholes which have not been addressed in the system and this continues to expose the system to vulnerabilities. As pointed by Kaunfman, the regulatory agencies were influenced by political lobbying and therefore they did not completely address all the loopholes in the system. The example cited by Kaunfman shows that the Dodd-Frank has taken only partial steps to strengthen the system and has also provided routes for manipulations. The lack of proper derivative trading standards led to the sub-prime crisis and these standards have not been adequately addressed.
B. The institutions which command a significant market share of the industry in which they operate are considered as too big to fail. As an example, Freddie Mac and Fannie Mae are mortgage providers and these cannot fail since these are used to implement the housing objectives of the Government. Similarly, a large bank like JP Morgan Chase cannot fail since it has a large market share. There are no institutions which can buy such large institutions and as such, they are supported by the Government....
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