Banks should fail without costing taxpayers?

Majorem Wealth Builders

From Money News | January 22, 2013

Banks should be allowed to fail without costing taxpayers money.  This was according to JP Morgan Jamie Dimon in a roundtable discussion in a town in Germany.  JP Morgan is the largest US bank with $2.36 trillion in assets.  On the other hand, Deutsche bank is the world's largest bank with $2.92 trillion assets.

This was perhaps in reference to 2008 US events that saw the fall of Lehman Brothers and other TARP too big to fail rescue packages in the US.

A new system where banks can be made stronger should be set up.  Capital adequacy is one good move.  The Basel 3 requirements should bring the bank to good directions.  Banks should not offer products (as derivatives) that regulators do not understand.  Many say that derivatives are really zero sum (we end up with nothing) products and the financial engineering was a sugar coating to the scam.

Let us go back to the loans deposit products?

Do you agree wit Jamie Dimon?

They are one of the too big to fail.  It is ok for them to fail without a rescue package?

Will the world's biggest bank not fail?

What happens to small ants like Majorem Lending if they fail?

Small institutions are wary of their survival and tend to  be more cautious and conservative?