To Big To Fail?

We are the 99%If a company is to big to fail then it needs to be managed for the benefit of all of us (the 100%) and not for the benefit of the shareholders or top management.

If the public must subsidize a business to prevent it’s failing because it will cause catastrophic impact on all of us (the public), then the public needs to sit on the board of that company to make sure they do not fail.  Another option is to nationalize these businesses for the benefit of everyone.  I am not in favor of this option, because the U.S. Congress cannot seem to manage themselves or our country.  But there are many examples of non-profit companies, with no shareholders, managing water, electric, and phone services very well, for the benefit of their customers.

I am not advocating that the government is directly involved with management of a business, but the government makes rules that provide access to a businesses information and governance.  This public access could be accomplished in several ways: board seats, public notice of future plans, rules specific to a industry or business area.

As the US subprime mortgage crisis of 2007 showed, industry practices that might be OK on a limited basis can be devastating when practiced industry-wide.  This is the result of a free market behaving badly!

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