4 ms·
I think we need to drop the concept of "too big to fail." If another large bank requires a bailout, let's give it to them, but make a Ma Bell-style breakup par
by redblacktree 14y ago
I think we need to drop the concept of "too big to fail." If another large bank requires a bailout, let's give it to them, but make a Ma Bell-style breakup part of the deal. i.e. You get the bailout, but you can no longer be too big to fail.
- tsotha 14y agoWhy wait? Instead of the consolidation we've seen, what we should have done is increased reserve requirements and broken up the banks so they all had assets below a certain dollar figure. On top of that, they should be forbidden from owning securities related to other banks or insurance companies.
- mtgx 14y agoThis should've already happened, and should happen. The big banks can not be allowed to stay this big, otherwise there's almost definitely a repeat of the 2008 financial crisis in another decade or two.