Some financial institutions are too big to operate efficiently. Always were. The fact they have been made smaller amidst the financial meltdown and are still operating, is an indicator they could have always been smaller.
In fact, when this administration was in its hectic bailout mood, bigger was deemed to be better. But putting together junk to make bigger junk was really stupid as a means of such bailing out of the financial community.
I always felt it was mainly executive ego that justified why they grew apace in the past. Their need to access capital was only partially attained by mere size.
If too big to fail is policy, why was Lehman Brothers allowed to fail? That failure was a fiasco for the economy that is still being felt today.
Then who is too big?
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