> You can force their assets to be wholly absorbed by other entities, like the Obama admin did with WaMu and Bear Stearns, but you can't liquidate them like a normal company.
Where I disagree here is that I don't see a forced absorption being needed if the assets are worth it. There may very well be red tape that needs to be cut or expedited in an extreme scenario, but if a bank's assets are still worth any value another bank will buy them for a price that benefits them. The government only needs to force the acquisition, including financial assistance or guarantees, if the bank assets have no net value.
> It begs the question, if these entities hold such a huge portion of the nation's financial destiny in their hands, why are they not beholden to the public?
This I totally agree with, though I land on the opposite direction. Should entities be allowed to be so large that they realistically need to be beholden to the public? I'd rather see bank protections removed, that would incentivize smaller banks that are inherently more beholden to their depositors.
Where I disagree here is that I don't see a forced absorption being needed if the assets are worth it. There may very well be red tape that needs to be cut or expedited in an extreme scenario, but if a bank's assets are still worth any value another bank will buy them for a price that benefits them. The government only needs to force the acquisition, including financial assistance or guarantees, if the bank assets have no net value.
> It begs the question, if these entities hold such a huge portion of the nation's financial destiny in their hands, why are they not beholden to the public?
This I totally agree with, though I land on the opposite direction. Should entities be allowed to be so large that they realistically need to be beholden to the public? I'd rather see bank protections removed, that would incentivize smaller banks that are inherently more beholden to their depositors.