TRANSFERRING YOUR ACCOUNT FROM A LARGE BANK TO A SMALL BANK (COMMENT).

TRANSFERRING YOUR ACCOUNT FROM A LARGE BANK TO A SMALL BANK (COMMENT). Mary Jane commented on my post asking whether the very biggest banks were a curse for the taxpayers of a country. She pointed out there is a new protest movement which asks people to shift their bank accounts from a big bank to a smaller bank and asked whether this could be bad for the country because it would reduce lending by big banks to big businesses. My belief is that if the biggest banks got smaller, that would be a very good thing. So much of how people feel about the current crisis depends on their priorities. My highest priorities are reducing unemployment and preventing the failure of banks that are too big to fail. A process that led to the very biggest banks becoming small enough to fail would be a very good thing. Estimates of banks that are too big to fail seem to come up with a list of 20 or so. If these 20 were smaller, there are lot of large banks in the range from 20 to 100, for example. Loans to big businesses by syndicates of 30 to 50 banks have been common for many years. Putting together syndicates of more banks would not be a stretch. I have no opinion on the political effectiveness of the protest.