Big Banks should deleverage or perish.
But there’s a bright side, albeit with a cruel irony, to such institutional failure. If we’re powerless to break up the banks, then we’re also powerless to bail them out should they fail. There will be no more bailouts, because we’ve simply run out of options.
Ha! Bernanke seems to be pushing the same trade. http://www.bloomberg.com/news/2013-04-09/bernanke-says-fed-to-press-banks-to-curb-liquidity-risk.html