Yes, Ed, I am 100% in agreement w/you on the points you raise in the last paragraph. I don't know how viable the system is with all the issues you have described, which are serious and need to be dealt with. However, my view on this is these things will be resolved by the mkt eventually. Sure, parts of the industry will prove to be non-viable and die, but that is how things should work in mkts, IMHO. Loopholes, like the one that exists for the MMFs and puts the taxpayer on the hook (even more than otherwise), should be eliminated and then let the chips fall where they may.
To promote entrepreneurs, USA must regulate the market capitalization of all listed companies to twice their quarterly revenue. Fed have been regulating the cash reserve ratio to promote sustainable economic growth since 1913.
It is wise to streamline a system or process after a major occurence. We used to have a containment process after an non conformance issue. This reduction to US banking system reduction is very similar. Having less players to deal with also streghtens the power of the the Fed. Under the current system the Fed does not have the resources necessary to control the OODA loop for the fininancial system. The consumer was not served with the past methodology of US banking. It was near a completely unregulated market as allowable. The Canadian system of banking has faired well during the last global economic crisis and it was due to safeguards and standards built into the process systems. Welcome to Neo Feudalism, Akuma