Too Big Too Fail As A Company Strategy

Here are two stories I found interesting. The first is on a BIS paper which says that there are no real scale economies beyond a certain point in banking. Company size is driven by the implicit taxpayer guarantees too big to fail financial institutions get.  The second story is in German but says the same thing about the mergers of healthcare providers in Germany – there is no reason for the mergers except to gain too-big-to-fail size.


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