Ever since the 2008 financial crisis and the subsequent big bank bailouts, the future of too-big-to-fail institutions has been of topic of serious debate. Are these large financial institutions detrimental to the well-being of the economy? Should they be downsized into smaller, more manageable units?

Here is some more evidence on why it imperative to simplify these mammoth institutions. The chart of the day shows the numbers of subsidiaries of the six largest banks in the US before 2009 and at present. Together, these six banks had 27,748 subsidiaries. Though the number has fallen since the crisis, it still stands at 22,621. Such

a complex maze of subsidiaries makes it very difficult for the financial authorities to regulate them.

 

 

Data source: Livemint