Why focus on the size of banks? Great Britain shows other ways to achieve financial reform.

Over the last three years there has been no shortage of schemes to solve the conundrum of "too big to fail" banks. Many academics and pundits have castigated regulators and central bankers for their inability to understand the obvious attractions of so-called "narrow banking," a restoration of Glass-Steagall-era separation of commercial and investment banking, or dramatically higher capital requirements. If only one of these remedies were adopted, the world would be a safer and happier place, and taxpayers would no longer be at risk of bailing out feckless financiers.

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