“Last year, we put in place consumer protections against hidden fees and penalties by credit card companies and new rules to prevent another financial crisis.”

“The rest of us aren’t bailing you out ever again.”

President Obama has made these promises in recent State of the Union addresses. But here’s a passage from Moody’s credit rating of Bank of America from 2012:

BAC’s ratings benefit from three notches of uplift from the standalone credit assessment at the subsidiary bank level, and two notches of uplift at the holding company level, reflecting Moody’s assumptions about the very high likelihood of support from the US government for bondholders or other creditors in the event that such support is required to prevent a default.

In a new op-ed, my AEI colleague Jim Pethokoukis goes further:

Almost nobody actually believes Too Big to Fail has ended. Certainly not megabank regulator Ben Bernanke. As the Federal Reserve chairman told a Senate panel earlier this year: “We need to stop Too Big to Fail. As somebody who has spent a lot of late nights trying to deal with these problems and the crisis, I would very much like to have the confidence that we could close down a large institution without causing damage to the rest of the economy.”

I recommend Jimmy P’s article.