There was never much of an argument behind "too big to fail", it is generally a euphemism for upper-class welfare. In a more realist world, "too big to fail" i

There was never much of an argument behind "too big to fail", it is generally a euphemism for upper-class welfare. In a more realist world, "too big to fail" is a mis-statement of "too risky to keep". Everything fails eventually and keeping incentives aligned relies on having a mechanism - failure - to flush out incompetents.