From Reuters: Regulators looking at ways to cap big banks: sourceBOHICA Finally someone admits that the sheer size of a lender is related to the risk to the entire system. What took them so long? Unlimited concentration of wealth has already proven poisonous to our society.Global banking regulators are discussing how to use extra capital cushions as a means of stopping very big lenders getting even larger, a source familiar with the talks said on Friday.
World leaders have asked the Basel Committee on Banking Supervision to flesh out a package of extra safeguards on big banks to lessen the need for taxpayer bailouts should one of them get into trouble again.
A source familiar with the talks told Reuters on Friday the committee was looking at how this package could also stop very big lenders growing further and representing more risk to the system....
Big banks have been lobbying furiously to water down the plans.
Banks have become welfare queens. Shut them down. Too big to fail should mean too big to exist.
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