It seems you're saying that small banks would be riskier because they have less influence overall in the market. I'm sure the JPMs of the world do take such ris

It seems you're saying that small banks would be riskier because they have less influence overall in the market. I'm sure the JPMs of the world do take such risks into account, however I find it hard to believe that this consideration is greater than the negative effects of a moral hazard of bank bailouts. Vis-a-vis - the larger the bank the more its failure would affect the economy as a whole (hence the Fed / Tres. would bail them out, which was widely recognized) & also they have a higher concentration of lobbying funds and ability to collude. I see my reserve ratio change as a definite net gain.