Friday, October 30, 2009

Is Breaking up Big Banks a good idea?


I found this pretty interesting on Richard A. Posners blog on theatlantic.com. In short, its about if its a good idea or not to break up some of the big banks to diffrent areas to possibly prevent another meltdown of our financial system. Personally, i dont think its a great idea. Everything is tied to together now, and seperating all of them would be extremely costly and somewhat risky. And a bank that focuses just on something such as savings accounts or something along those lines would generate very little income. I think if there was an actual well thought out solution it might work, but other than that, this seems like just an idea, nothing more.

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