How to cut megabanks down to size

While the prevailing opinion in Washington is that the days of bailing out too-big-too-fail financial institutions is over, Richard W. Fisher, head of the Federal Reserve Bank of Dallas is not so sure. In fact, he proposes that the largest megabanks should be cut down to size by way of a return to a more sophisticated version of the Glass-Steagall Act, so that no one institution can endanger the entire financial system. Not only do excessively large banks threaten taxpayers with the threat of potential bailout, Fisher says, but they also fail to lend, which is suppressing economic recovery on a large scale.