Simon and Charles Calomiris were quoted on NPR this morning on the topic of the day — too big to fail.
I thought one of Calomiris’s examples was interesting. He cited Mexico, where banking was dominated by six families that wouldn’t lend to potential competitors. After the Mexican financial crisis and the entry of foreign banks, now it is easier for companies to raise money. It seems to me that story could be used by either side.
By James Kwak