Chris Whalen: The Fallacy of "Too Big To Fail"--Why the Big Banks Will Eventually Break Up; Why politicians let MF Global investors get taken

... and more. A GREAT conversation - ``If you look at the new Basel accords that the US is supposed to be adopting, it's entirely hostile to lending. So I think whether you're talking about real estate, residential, commercial, we have some really big issues with this regulatory regime. For example, most banks are going to have to get out of the conduit business; that's going to end up in the non-bank sector. Well, look at where profits came from the big banks over the last seven or eight years. It was mortgage banking; it originates itself. So if I'm even Wells Fargo, which is the last man standing in the US marketplace today, 30 percent market share, I'm eventually going to have to get out of that business; I won't be able to own a conduit anymore. That's pretty radical stuff. ''