Too-Big-To-Manage <br> Emerges As New Concern <br>In the Financial Crisis

American bank regulators are warning the four big banks – JP Morgan, Bank of America, Citigroup and Wells Fargo – that they risk being broken up because of their continued wrongdoing and blunders. The president of the New York Federal Reserve Bank, William Dudley, cited such post-crisis misdeeds as the big banks’ rigging of both the London Interbank Offered Rate and the foreign exchange markets as well as JP Morgan’s loss of $6 billion in its “London Whale” trading scandal. Mr. Dudley warned “If that [continued bad behavior] were to occur, the inevitable conclusion will be reached that your firms are too big and complex to manage effectively. In that case, financial stability concerns would dictate that your firms need to be dramatically downsized…”