The Corner

Banks Aren’t Too Big

Andrew Redleaf and Rich Vigilante continue the debate about whether we should break up the big banks to avoid “too big to fail” bailouts. Contra Arnold Kling, they say our problem isn’t banks that are too big — it’s banks that are too opaque. Rather than breaking up the banks, we should open them up by forcing them to be totally transparent. Banks should be required to disclose all their holdings, all their assets, all their positions — down to the stock certificate number. With this kind of transparency, the free market will control bank failures, say Redleaf and Vigilante.

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