Former Citi Boss Wants Big Banks Cut To Size

So that tax-payers money are less at risk of greedy behaviour. Essentially he wants investment banking and commercial banking to be carried out by separate institutions. Or if you are familiar with US legislation, to bring back the Glass-Steagall Act. The nice thing about this proposal is that it would reduce systemic risk because we would have fewer and smaller "too-big-to-fail banks". More on this later.

US Has Plan For the Too-Big-To-Fail Darlings

According to the New York Times, the United States are about to give themselves more options to deal with the gigantic risks that such firms create for the economy at large. These include kicking management out, taking control of the firm and playing around with their capital structure so as to minimise the risk to the system as a whole (the so-called systemic risk).

A fair response, I guess, to the uproar of throwing good taxpayers' money after bad behaviour.