It's fine to be a big bank

........In India, the RBI insists on staff accountability for non-performing assets as well as corrupt practices. The board is required to be told who has been held accountable and how. Regulators abroad must do likewise; they cannot take the position that staff accountability is a 'management' issue. In high-profile cases, regulators must seek public disclosure of actions taken against bank executives, including details of claw-back of bonuses paid. If you can't jail them, at least name and shame them. Secondly, it is worth reviewing whether the capital set aside for such risks under the current rules is adequate at all, given the magnitude of fines paid out in recent cases. Thirdly, we must face up to the fact that the fines that banks have had to pay are only another aspect of the 'too big to fail' problem. Banks have the same incentives to take liberties with the law as they have for taking credit risk or market risk..........

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