EconomicsMortgage

Why mega banks are still needed

Too big to fail is a problem, but so is a world without mega lenders

Bank of America (BAC) is too big to fail, but one commentator says mega banks are not necessarily a bad thing. Instead, lenders of all sizes are needed to make the economy strive. Seeking Alpha elaborates on this viewpoint, saying:

The U.S. housing market was essentially a massive house of cards which inevitably had to come crashing down. Lehman Brothers, the first big bank to fail, was simply a victim of the crisis, not the cause of it. I posit if we break up the big U.S. banks we may solve the issue of the banks being too big to fail, yet make the banks too small to succeed in the process.

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3d rendering of a row of luxury townhouses along a street

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