Dan Walker

'Bad Bank' Problem: Solution Devised Must Benefit All Parties

OK, Add JPM to the pile. The bottom line is that ridding the world of a pile of deadwood will open up the market for a raft of newcomers to provide banking services to an underserved (for the last year) country. If we were rid of the megaliths I would be willing to open a community bank and I am sure there are at least 20,000 others who are similarly willing. Too Big to Fail is Too Big to Succeed and we need to replace this model with a raft of smaller banks. There is no reason the Fed cannot perform the clearing services formerly provided by JPM, and, indeed, a great many arguments can be made that this should be their ONLY function but that is another story for later this year.