This isn't about helping community banks and small businesses, so don't suck all the air out of the room trying to convince voters that it is. A lot of little banks isn't necessarily an amazing thing, but, if that's what Congress wants, it should repeal the law that allows banks to conduct business across state lines. And small businesses are the backbone of the American economy, we all know the line. But lowering the standards to provide loans to small businesses is a bad shortcut. Small businesses built on poor management and bad ideas will fail, and the economic fallout will extend beyond their balance sheets (just like mortgage foreclosures hurt more than just the individual home owner in 2008). I agree there's morale hazard associated with Too Big to Fail, but there better be a good alternative before you pull the plug on it. If a large financial institution goes under, their fault or not, it's going to result in the loss of tens of thousands of jobs. And just like everything else, their failure won't take place in a vacuum. The big difference is, it doesn't take thousands of big banks failing at once (a la 2008 mortgage crisis) to cause financial ruin. One large bank going under could take the whole economy, America's and, with the right bank, the world's, with it.