Fisher Wants to Break Up Big Banks

The Dallas Fed President spoke today on breaking up the too-big-to-fail banks.  He believes the industry has become way too concentrated, with half of the industry’s assets sitting on the reserves at the largest five institutions.  He wants to break up the institutions in to more manageable institutions, emphasizing that the bank’s are too large and complex to truly know their customer and follow reliable and responsible risk management practices.

My favorite quote:

Yet, in my view, there is only one fail-safe way to deal with too big to fail. I believe that too-big-to-fail banks are too-dangerous-to-permit.