The too big to fail situation in the banking system has been criticised multiple times, but banking concentration in the US and Europe is still rising. The problem is not only the systemic risk, but also the formation of oligopolies, in more than half of the listed countries the three top banks control more than 60% of the country assets.
Now the Credit Suisse crisis became an excuse to exacerbate the problem by enabling a merger between the two biggest banks in Switzerland. An operation that in normal conditions would probably have been rejected due to anti trust concerns. Furthermore the failure to address the too big too fail problem was censured once again, but the Swiss parliament vote was only symbolic.
In the last 30 year we already saw the collapse of many big banks, past experience shows that we cannot rule out it will happen again. In that case it is also possible that the financial institutions will take advantage of the situation to force the political world to accept further concentration. Until now the only alternative solutions adopted by some governments were unpopular nationalisations like it happened with ABN AMRO and Royal Bank of Scotland. But given the rise of government debts it is unlikely that they will be able to save again a collapsing bank by nationalisation.
Is there a way for governments to avoid to remain trapped between two evils? Increase banking concentration or risk a systemic failure.