Shareholders Have Hammer to Smash Too-Big-to-Fail Banks

Ever since the financial crisis began, the U.S. has struggled to address the problem of banks that are deemed too big to fail, those that would need a government bailout if they were about to collapse because they might take down the economy.

But instead of counting on government to resolve this quandary, the industry should try a free-market, investor-friendly approach to curbing systemic risk: Too-big-to-fail banks should break themselves up and unleash value for shareholders if management can’t deliver top-notch results.