Academic

AT CNBC, SKEPTICISM ON BIG BANKS: Mega institutions (financial institutions and insurance compani?

By Glenn Reynolds

AT CNBC, SKEPTICISM ON BIG BANKS:

Mega institutions (financial institutions and insurance companies come to mind) that become TOO BIG TO MANAGE are likely to become TOO BIG TO FAIL.

It is impossible for top management to effectively monitor what is happening in all the nooks and crannies which have proven themselves able to bring down the largest Goliaths. And the Boards of Directors? Too friendly, too close, not independent enough, chosen as ?buddies? rather than for skills needed. They have for the large part failed to perform. Chris (?I still can?t find my Countrywide mortgage documents?) Dodd?s wife serves on many boards. Her consulting company has NO clients. Just one of many many possible examples of inappropriate Board appointments.

I tend to agree that institutions that are too big to fail are too big to exist.

Full post as published by Instapundit.com on May 20, 2009 (boomark / email).