Huffpost Business

Paul Krugman: Why We DON'T Need To Break Up The Big Banks

Posted: Updated:
Print

Breaking up big banks wouldn't really solve our problems, because it's perfectly possible to have a financial crisis that mainly takes the form of a run on smaller institutions. In fact, that's precisely what happened in the 1930s, when most of the banks that collapsed were relatively small -- small enough that the Federal Reserve believed that it was O.K. to let them fail.

Read the whole story at nytimes.com

Around the Web

More on the bank plan - Paul Krugman Blog - NYTimes.com

“The banks” versus “some banks” - Paul Krugman Blog - NYTimes.com

Op-Ed Columnist - The Banks Are Not All Right - NYTimes.com