The newest Federal Reserve president, Neel Kashkari, put the issue of "too big to fail" banks back on centre stage last week. In a deeply political speech to the Brookings Institute, Kashkari, a former Goldman Sachs banker turned banking populist, argued that no one believes the US government would allow JP Morgan to collapse in a financial crisis (no more than Germany would let Deutsche Bank fail). And that big banks should therefore be broken up. The speech had as much to do with Kashkari's political ambitions as with an honest critique of the state of play in the banking industry.
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