Mortgage Professional America forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Breaking up the big banks: Is anybody thinking?

Notify me of new replies via email
  • Ron B | | 19 Sep 2012, 03:16 PM Agree 0
    This argument is ridicules on its face.
    How big is too big? Any institution is too large when its failure can put the nation’s economy at risk simply because of its size. Also these banks are not functioning as well as they could be if they were smaller. They are also too big to manage. If they were doing such a good job the demand for creditworthy lending would not be so high.
  • B | | 19 Sep 2012, 06:45 PM Agree 0
    That was a completely ignorant comment. However, I could have been biased based on the lack of proper grammar & spelling.
  • William | | 24 Sep 2012, 11:19 AM Agree 0
    On the face of it, you have made some very valid comments. The problem is that the "Big Banks" have gone on a spending spree, buying every large brokerage firm and insurance company they can get their hands on. This contributes to the illusion that they are to big to fail.

    Their political power is ridiculous. They use the "too big to fail" argument every time they want something. "If you don't grant this, we're going to go under" For instance, how can you justify allowing Chase to buy WaMu deposits just one week before you bail Chase out? How do you approve Wells' purchace of Wachovia? Its politics, pure and simple.

    The solution is make the big banks go back to what they should do best...lending. Get them out of the insurance business or securities brokerage. Then slowly increase capital requirements. That should surely "right the ship".
Post a reply