All Commentary
Wednesday, April 21, 2010

Banks Get Bigger under Government Influence

“In the last year and a half, the largest financial institutions have only grown bigger, mainly as a result of government-brokered mergers. They now enjoy borrowing at significantly lower rates than their smaller competitors, a result of the bond markets’ implicit assumption that the giant banks are ‘too big to fail.’ In the sweeping legislation before the Senate, there is no attempt to break up big banks as a means of creating a less risky financial system.” (New York Times, Wednesday)

Rotten to the core.

FEE Timely Classic
“Banking Without Regulation” by Lawrence H. White