Summarizing the 3 Theories on the Too Big to Fail Problem

Download 2009-10-28 Theories on Solving 'Too Big to Fail' – WSJ.com

The Mervyn King-George Shultz view: Bust them up.

The Paul Volcker view: Separate trading from deposit-taking and loan-making.

The Ben Bernanke-Timothy Geithner-Barney Frank view: Stuck with TBTF institutions, the government should make them less prone to failure. To this camp, the King-Shultz and Volcker solutions wouldn't have prevented the recent crisis and amount to trying to roll back the tide.

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