Break Up The Banks

Three years after the financial crisis and the bailouts, and we’re not much better off: “Too big to fail” remains, banking profits are sinking and those big, overregulated banks can’t manage to lend to small businesses.

Maybe it’s time to stop protecting this failed business model — and finally begin to break up the nation’s largest banks.

Making them smaller and less “systemically” important may be the only way to get them to lend more. If they hold less capital, they can start taking some risks without a chance of blowing up the whole financial system.

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