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Big is bad. At least that has become the view of many individuals about big banks ever
since the financial crisis of 2007‐2009. The fear is that if a big bank gets into trouble, its
problems will infect other financial institutions and threaten the entire economy. In
theory, of course, regulators have long been expected to prevent banks from reckless behavior
and to shut down failing banks in a timely, orderly, and cost‐effective manner.