tisonlyi

The 17 US banks that have failed this year (plus two corporate credit unions - that is credit unions for corporations) have all been pretty small outfits, relatively speaking. The US banking system is set up for some banking failures on an ongoing basis, in-keeping with the high-risk, high-reward nature of the system. As the story goes.

Even during the good years, a number of banks would generally fail.

The problem in the US isn't with the banks that have failed so far this year, they've been resolved pretty quickly and painlessly from what I've seen - you know about the FDIC, right?

No, the problem is with the banks they haven't allowed to fail by govt fiat.

With proper regulation would those banks be healthy? Probably. Smaller? Definitely. Would the US have had any/much growth since the collapse and bailout of Long Term Capital Management, maybe even go back to the S&Ls, without the merger and deregulation binge? Doubtful. Certainly nowhere near what was had. Including tech revolutions.

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"I do not agree that the dog in a manger has the final right to the manger even though he may have lain there for a very long time. I do not admit that right. I do not admit for instance, that a great wrong has been done to the Red Indians of America or the black people of Australia. I do not admit that a wrong has been done to these people by the fact that a stronger race, a higher-grade race, a more worldly wise race to put it that way, has come in and taken their place." - Winston Churchill, 1937 --{ORLY?}--