Friday, March 22, 2013

Too Big To Fail

Stories like this drive me nuts:

There is virtually no chance any significant piece of legislation will pass Congress that would meaningfully reduce the size of the nation’s biggest banks or restrict their activities.

It’s true the recent rise in break-up-the-banks fever could embolden regulators to get a little tougher in final Dodd-Frank rules, expected later this year. And a strange bedfellows, left-right coalition is now pressing for more dramatic action.

Still, there’s nothing on the horizon likely to satisfy those who say the biggest banks — led by JPMorganChase, Citigroup, Wells Fargo and Bank of America — continue to pose a systemic threat to the U.S. economy.

First was "too big to fail." Then was "too big to prosecute." At some point, can we please focus on the first two words in those phrases?

We screwed up letting this happen. We need to fix it.

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