It's very simple. If you're "Too Big To Fail", that means:
a) You're too big to be private, so you'll have to be taken over.
b) You'll need to socialize your losses, so we'll need to socialize your profits.
a) You're too big to be private, so you'll have to be taken over.
b) You'll need to socialize your losses, so we'll need to socialize your profits.
But bailing everyone out who's too big to fail just encourages them to get big.
So as the above poster said, we should have an almost automatic break up, or be nationalized law when ever anything gets "too big to fail"
By nationalize I mean the government would take over, and then slowly but steadily shut down operations.
This would allow smaller competitor to take up the slack.
It would also encourage companies to break up rather then be nationalized, it wouldn't be much of a choice.