Knights Who Say…


An update on a couple of the Knights.  First, Simon Johnson, who today testified before congress that the government should use modified anti-trust legislation to prevent banks from becoming too big to fail.  Sound familiar?  Go, Simon, go!

And Ezra Klein, in posting about Johnson’s testimony, made the argument even familiarer:

The basic principle, after all, should hold for both spheres. Antitrust law is concerned with the dangers that size poses to markets. It offers regulators a usable mechanism for breaking up corporations that grow too large and thus threaten continued competition — which is to say, threaten the market’s continued capacity to function. This crisis has taught us that size can endanger the very survival of the market through means that have nothing to do with noncompetitive behavior. But we’re still dealing with the problems that result from too much “bigness,” and that’s fundamentally the sort of problem that antitrust laws were designed to address.

I’ll just add, since I seem to be on something of a populist kick today: the bigger the bank, the smaller you and your money look to them.


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