Sunday, September 20, 2009

Too Big To Fail

Finally, this topic is getting a little more attention in the press. The facts are clear. We basically have 4 major banks: Wells Fargo, Citi, BOA, and Chase. In another financial crisis, could any of these be allowed to fail without throwing the economy into the dark ages?

Is it me? Or, is this just nuts?
Shouldn't we work for a situation where we have many, many "athletic" banks that can service the market's needs? They could team up on specific large deals. We could regulate the number that could get involved an any one deal, and/or the number that could/should get involved in specific segments of the business and financial markets.
Whatever the outcome, a break up of these banks is required. Hell, we broke up "Ma Bell" for reasons less critical to the world economy .

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