Break Up The Big Banks? Seven Reasons Why That's A Bad Idea

Break Up The Big Banks? Seven Reasons Why That’s A Bad Idea In recent months, many politicians and policymakers have grown more aggressively vocal in their call to break up large and systemically important U.S. banks as a further measure toward preventing another global financial crisis. We suggest they reconsider for several reasons. Regulations are already helping. Since the crisis in 2008–2009, we have seen a wave of improvements in bank regulation and supervision, from the application of Basel III enhanced capital and liquidity requirements to much of the Dodd-Frank Act, robust stress testing and the move to greater transparency…