Big Banks Are Bad Banks

As we've stated here before, huge banks must be restructured and their access to the safety-net must be scaled back, because neither they nor their regulators have proved effective in monitoring their risks.

And last week Richard W. Fisher, the President of the Federal Reserve Bank of Dallas, laid out a compelling proposal for shrinking financial giants in order to protect taxpayers. He suggested that megabanks be chopped into pieces, so that no one of them could endanger the entire financial system.