How to break up the big banks.

Once Again, Break Up the Big Banks - Arnold Kling, National Review

 

“Instead, we should seek limits on the asset size of individual banks. J. P. Morgan today is about ten times as large as any bank ought to be. The general public should not have to lose sleep worrying about this or any other individual bank’s fate, and with smaller banks, they wouldn’t have to.”

 

Currently banks borrow from the Federal reserve.  Have the Federal Reserve not deal with entities with assets exceeding one hundred million dollars.  The definition of the entity would need to be comprehensive to avoid a paperwork shuffle to avoid the limit.  The limits would need to be inforced by rulemakes with no incentive to accede to the banks interests, probably appointed officials, confirmed by congress, with tenure. Possibly competing groups, with a downside of significant magnitude if a bank defaulted, and the assets were determined above the limit. Such as, the monitoring agency would cease to exist.