The five biggest banks in the United States are too powerful and should be broken up, Dallas Fed President Richard Fisher said on Wednesday.Read the rest here.
"After the crisis, the five largest banks had a higher concentration of deposits than they did before the crisis," he said. "I am of the belief personally that the power of the five largest banks is too concentrated."
The U.S. Dodd-Frank reform and consumer protection act includes mechanisms for regulators to break up large financial companies, but imposes high hurdles for such action.
"The purpose of Dodd-Frank was to reduce the concentration of power and we have a term called 'too big to fail'... perversely, these banks are now even bigger, they are too 'bigger' to fail than before."
A rather rare moment where I agree with something coming out of the Federal Reserve. I have been arguing for the breakup of the megabanks since before the 2008 financial crisis.