Comments on: Will small banks replicate big banks? A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 By: JCH Tue, 17 Nov 2009 03:12:46 +0000 Small banks has no meaning. When I was a kid growing up in the Dakotas we had a small bank. The safe rolled around on wheels. It was profoundly unconnected. The banks that make up the top 50 % of the banking system, which my small Dakota bank was not one, are going to be as interconnected as a snarled fishing line whether there are 2 of them or 200 of them.

One can say the top-50% banks would not be equally interconnected if small, but it would be almost impossible that they would not be as interconnected. It the global economy that interconnects them, not their number.

By: acuvue oasys Fri, 13 Nov 2009 22:12:46 +0000 That’s right Charles, Congress ignored the problem until it became their problem and then finally decided to take “action”.

Unfortunately, the effects of this woeful handling of the banks iss till being felt and will continue being felt for a while yet.

By: Charles Johnson Fri, 13 Nov 2009 12:12:29 +0000 The current arrangement dealt our nation’s economy a near fatal blow.

There are several issues at stake regarding financial entities that are “too big to fail”.

Does “too big to fail” reduce the danger to economies?

Is “too big to fail” fair in a competitive environment?

Is “too big to fail” logical?

Does “too big to fail” prevent situations where corporate interests can supersede national interest in Congress?

We don’t have to theorize and speculate. The proof is in the pudding.

So why hasn’t the clear and present danger of “too big to fail” been corrected? Perhaps because they are also “too big to be bossed around”.

Congress should have made the arrangements for the demise of “too big to fail” while those corporations were on life support. Now that they have been resuscitated with a transfusion of capital from generations of humanity that haven’t even been born yet, they are regaining their arrogance and swagger.

By: Nick Rowe Fri, 13 Nov 2009 03:27:18 +0000 _canadian_initi/2009/07/too-big-a-percen tage-to-fail.html