I was very pleased to read Jon Huntsman’s plan on financial reform . Two aspects of it especially struck me.

First, it never made any sense to me to have financial institutions so large that they would be considered too big to fail. That is they are so large that if they were to fail the entire US economy would be in danger. Indeed, I had writen about this over 2 years ago.. Jon Huntsman presents a plan to eliminate this risk by the simplest means possible: not have too big to fail institutions.

Second, he proposes the repeal of Dodd-Frank. This was our government’s regulatory response to the 2008 crisis. I read quite a few newspapers (including both the NY Times and the Wall Street Journal) and I know this regulatory reform is opposed by many in the business community but it seems to me if the goverment is ultimately reponsible for the debts of the big banks, there is a need for extensive regulation. It is an arguable point whether Dodd-Frank got it right. But if there are no too big to fail institutions, a lighter regulatory hand is appropriate.

There are several other aspects to Jon Huntsman’s plan but I just wanted to highlight these. Although Jon Huntsman is way back in the pack seeking the GOP nomination for President, he may be the most qualified and thoughtful in the group.