Today(July 25) Sandy Weill, former chairman of CItigroup and Sheila Bair, former chairperson of FDIC both say the time is right to break up the big banks. Weill wants to divide them up, along the purpose of Glass-Steagall, by investment activity. That may not be far enough to return the banks to their basic mission of efficiently funding the economy. It may take some sub-cuts to restore the utility and integrity of the banking system.
If we didn’t have all this concentration, it might be hard to find the rationale of 2300 pages of regulation, as in the Dodd-Frank. If you have concentrated businesses, you need a big government. They go together.
Of course, the big problem; the Congress is way behind Weill and Bair.