Tom Armistead

A Company Is Too Big to Fail? Make It Smaller

Your point that "too big to fail" institutions should be down-sized by regulators is well taken - it reduces systemic risk which has been a threat to the world economy. The regulatory solutions imposed by the prior regime have added to risk by increasing the size of the "savior banks." Citigroup and Bank of America should be broken up, not for anti-trust/competition reaons, but because their size creates systemic risk.

As a practical matter anit-trust legislation has not been enforced meaningfully for many years, partly with a view toward world competition and the belief that US enterprises needed to be big enough to compete on the global stage.

Our current problems stem from a lack of regulation - CDS for example, SEC laxity in enforcing existing legislation, lack of oversight of the investment banks, etc. Human beings are incredibly selfish, greedy, and indifferent to the effect their actions have on others. I am so sorry, but that is why we need comprehensive regulation of the financial system.