Douglas Elliott, Brookings
Proposals for radical restructuring of the banking sector have surged again, fueled by the recent wave of banking scandals. These scandals add to the public's justified anger at the contributions of bankers to the financial crisis and its extremely damaging aftermath. They also magnify a sense among many that the big banks are both too powerful and too big to manage well. However, anger and frustration have been very poor policy guides for dealing with the financial system and I firmly believe that many of the proposals to restructure banking would damage all of us.Lest this sound like...