Should we break up banks which are too big to fail?

[Fr3shjive]

I noticed in the news that Obama is proposing legislation to break up banks that are too big to fail.

Im not sure how I feel about this. I think its a good idea that a bank shouldnt be so big that they could bring down the entire financial system but I dont think the government should be intervening in the affairs of private business.

So what are the pros and cons of this legislation?

Thanks.

[jmdrake]

The market should break up the banks that are too big to fail. Not the government. There should be a moratorium on bailouts.

[Andrew-Austin]

"Too big to fail" is just a slogan coined in the ignorant backwaters of Washington D.C. Meaningless rhetoric.

Business/bank failure is an integral part of a free market.

If a institution has grown to the point that its demise would momentarily (and it would only be momentarily assuming a relatively stable economy), then it should still fail as it is failing for a reason and there are no better alternatives.

There really is no such thing as a "too big to fail" unless past government intervention/management has encouraged such an anomaly to come about.

[fletcher]

No bank is too big to fail. What we should do is just let the banks fail.

[Fr3shjive]

No bank is too big to fail. What we should do is just let the banks fail.

/thread.

I pretty much agree with this. I dont think we needed to bail em out them and I dont think we need more regulation to keep them in line.