The Dallas Fed chief gets it: big banks at some point will need to be broken apart in order to save the system.

Money quote:

Dallas Federal Reserve Bank President Richard Fisher wants the biggest U.S. banks broken up, calling them a danger to financial system stability and their perpetuation a drag on the economy.  It’s an argument he’s made before – in full-length speeches, asides to reporters, parries to audience questions. (For the latest iteration, see Dallas Fed bank’s annual report published Wednesday.)

I’ve fought a lot of naysayers when I came to this viewpoint in late 2009, that the financial system shouldn’t be regulated any differently than the trusts that TR broke up at the beginning of last century.  At some point, ‘too big’ is just plainly too big.

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