When financial sector growth becomes a drag

Even during good times the impact of big finance can be negative for the world

New York

ATTENDEES at last week's JPMorgan Chase annual investor day once again asked the question that no big bank executive wants to hear. Wouldn't shareholders be better off if the company were smaller or broken up?

No, no and no, JPMorgan replied. "Scale has always defined the winner in banking," said Marianne Lake, the company's chief financial officer.

It is to be expected that all big bank executives believe in big finance. They benefit from being giant, after all. For the rest of us, though,...

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