Corporatism Generali Style

housesitter

Any company too big to fail is too big to exist.
Unfortunately there is a point when their size is also too big that they are in effect a monopoly, however everyone but the regulator sees that.

The bean counteres in these companies seem to have a wish to conquer and incorporate as much as they can into their far reaching business empire.

It's not actually doing anyone any favours but a few at the top.

Centuries have passed but it's the same old story.

tomterm8

housesitter wrote: »

Any company too big to fail is too big to exist.
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I don't really agree, there are natural monopolies where the most efficient solution is a single or a couple of companys which are highly regulated. The key is, in my view, that companies that have backing from the state or which are too big to fail should be highly regulated and treated as utilities. Their profit, and market offerings should be regulated.

Personally, I think that a large number of small banks is the best solution to the banking market, but with some central clearing mechanism that would noi doubt be highly regulated and too big to fail.

What's amazing to me is that before the crises there were 10 banks in europe with GDP greater than their host nations, and after the crises there are 15 banks. That suggest that regulation isn't working.