Romney edges toward banking reform

ROMNEY: I think Dodd-Frank has contributed to a concentration of banking assets into the hands of a small number of banks. By designating certain banks as being too big to fail, strategically important banks, it makes it more difficult for the banks not so designated to attract customers and to expand their business. What you’ve seen as a result is a concentration in the hands of a handful of banks that now has greater systemic threat that what even existed before.
The right course was not to say that this handful of banks will be protected by the government, implying therefore that all the rest of the banks are on their own, because smart depositors will all move towards the banks that are protected by government. It had the opposite effect of what was advertised. What was advertised was that we would keep the too big to fail banks from getting bigger, but the result of the legislation is just the opposite.