Drew Horn

Wall Street Breakfast: Must-Know News

The most important reform is prevention of " too big to fail". AIG, Citi, GM, Ford, Lehman, etc. etc. were allowed to increase in size. The only (superficial) control was an weak attempt to prevent monopoies.

There is an assumption that large size leads to efficiency but there is no evidence that this is true.The current crisis is evidence that large size is too risky. Aside from making it a bit less work to make an investment, the large size of companies no public benefit.

In the new investment paradigm, size should be limited so risk is dipersed.