Big Banks: Resolving the "Too Big to Fail" Issue

In the United States, just five banks issue half of all mortgages and two-thirds of all credit cards, and they control more than 40% of all bank deposits. They are anointed Too Big to Fail. But as recent scandals show, they aren't too big to make mistakes. John Prout offers some ideas for winding down the Too Big to Fail era.

That scandals keep emerging from the darkness of the shadow banking system underlines the extent to which derivatives have grown to an unmanageable size.

That we seem not to send bankers to jail for losing billions of dollars underscores the immense power of bank lobbyists to neutralize the regulators.

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