The Milken Institute hosted a debate on whether the big banks should be broken up to protect taxpayers.
The top five banks in the U.S. hold more than 50 percent of the total assets in the U.S. banking industry. Some argue that big banks should be broken up due to concerns over systemic risk to the global economy. Others disagree, arguing that allowing markets to dictate the size and structure of banks promotes efficient global credit markets and ensures the competitiveness of U.S. banks.
Harvey Rosenblum, executive vice president and director of research of the Federal Reserve Bank of Dallas; Simon Johnson, professor of Global Economics and Management at the Massachusetts Institute of Technology; Peter Wallison, former general counsel at the U.S. Treasury Department; Phillip Swagel, former assistant secretary for economic policy at the Treasury Department, discussed these issues.