The NYT reported that in a speech before the Independent Community Bankers of America Federal Reserve Board Chairman Ben Bernanke lashed out against the risks created by giant too big to fail banks. It would have been worth mentioning that Bernanke had helped to engineer several mergers that made very large banks even larger during the financial crisis in 2008.

For example, when Bear Stearns was collapsing, the Fed supported an arrangement whereby it was taken over by J.P> Morgan in exchange for a guarantee of $30 billion in assets. The Fed also supported the takeover of Wachovia by Wells Fargo. If Mr. Bernanke has changed his view on the risks posed by very large banks, it would have been appropriate to call readers attention to this fact.

–Dean Baker

Dean Baker is senior economist at the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, including Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer. Read more about Dean.