Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (41667)	3/5/2010 11:58:20 AM
From: TimF	Read Replies (2) \| Respond to of 71588

Big banks mean if one fails there the problem is bigger, but not necessarily that the problem with bank failure is bigger. If you have a lot of little banks, then you can have the failure of a lot of little banks (and the little banks are probably more likely to fail). Well if you take it to the extremes (say if one bank controlled 60 percent of all banking assets rather than 10), than a single individual case of bad management (rather than a general movement of banks in the same faulty direction) can cause a financial crisis, so there is some point where big banks make bank system failure much more likely, but I don't see us as clearly being there yet.