Bank of America Getting $25 Billion

Baseline Scenario writes about the $25 billion going to Bank of America, Here We Go Again . . .. They end with this:

"It is true that one price we are paying in these bailouts is the creation of a new tier of mega-banks that, because they are Too Big To Fail, have the competitive advantage of being essentially government-guaranteed. What we really need as a condition on TARP money is a new regulatory structure to make sure that these mega-banks do not abuse the oligopolistic position we have just handed them, and perhaps a commitment to break them up when economic circumstances allow. That would be considerably more valuable than a cap on executive salaries and corporate jets. But it will also be a lot more difficult to define and to agree on."

Robert Reich writes What Should Be Done With The Next $350 Billion of Taxpayer Bailout Money: Criteria for TARP II