Better late than never: In the future, in the U.S. too big to fail will be too big

By Money Matters Editors

Perhaps the wind is starting to change in Washington, and logic guided by prudence is starting to prevail.

U.S. Federal Reserve Chairman Ben Bernanke, in a question and answer session after a speech before the Economic Club of New York, said Monday regulators should have the power to shrink or downsize banks that pose risk to the markets.

“The supervisors should be allowed by law to insist that the company divest itself or shrink its activities,” Bernanke said in response to a question.

And to that, Money Matters Editors say, “High time!”