Let's have some good old fashioned trust busting in the banking sector

We haven’t done a darn thing about our US banks that are too big to fail. We would still have a massive problem if Wells Fargo, BofA, Citibank, JP Morgan or Goldman Sachs went bankrupt today.

Here is the answer. Let’s simply break all of the top five banks in two. Take all of their assets and all of their liabilities and split the baby. We would have Citibank A and Citibank B (and after four months we would make each of them bid on the underlying name and the other would have to establish a new name).

Three years later, let’s establish a system that any bank with assets that are greater than 600 billion will be split in two again.

We would have competition for checking and savings accounts again. We would have far more innovation and at this size we can allow these smaller institutions to take virtually any risk they want to take, because if they blow it then we can afford to let them go broke.