I don't normally put "prescriptive" pieces into OMS, but this short piece from Sallie Krawcheck, former CFP at Citi, on how to fix banks is an exception. Precisely because it can also be looked at as a way to evaluate bank stocks and equity. At the end of the day, we should look at a bank as an stream of managed fixed income plus other businesses. Those other businesses either add income to the bank spread or subtract it. But deconstructing a bank might suggest we could duplicate the bank by buying a loan book (funds are available) along with a trading book (funds are available). We would then be very careful as we looked at the management of those funds, rather than at an overall income (and evaluating Jamie Dimon, for example, who cannot personally manage so complex an empire, no matter how brilliant he is). Which is why Krawcheck does not go far enough (though that admittedly was not the purpose of her article). Banks should be limited by regulation as to structure and income, and increasing size should require increasing levels of capital. There should be no incentive to get to be too big too fail.