Big Banks Should be Broken Up, Not 'Coddled': Fed's FisherHow come Geithner isn't saying anything like this?
Published: Friday, 20 Nov 2009
Banks that are considered too large to fail should be dismantled rather than "coddled," Dallas Federal Reserve Bank President Richard Fisher said on Thursday.
Fisher suggested the only way of ensuring that such financial giants do not pose recurrent problems is by making them smaller.
"This means finding ways not to live with 'em and getting on with developing the least disruptive way to have them divest those parts of the 'franchise,' such as proprietary trading, that place the deposit and lending function at risk and otherwise present conflicts of interest," Fisher said in prepared remarks to the Cato Institute, a libertarian think tank.
The suggestion that "too big to fail" = "too big to exist" is being heard more frequently of late, and from respectable people - not just nut-jobs like me.
I remind loyal readers that you just may have heard this suggestion here first!... back in February!!!