Banks and the true lack of transparency

 “Too big to fail” banks  have become “too complex to exist”   - Gillian Tett FT

This a a good twist of the phrase and may be the best short explanation of the current state of large banking. Any firm should be transparent enough to be easily explained and managed. 

The current set of large banks cannot be managed. Managers cannot explain simply their business model. We can see that with JP Morgan and they are too big to fail. There is systemic risk and regulators may not be able to manage that risk. If this is true, then the roll of government should be to break-up banks and make them follow a size and function that can be managed effective;y, regulated simply, and diversified appropriately.