By Peter Bofinger
The “too big to fail” problem, one of the most negative consequences of the financial crisis, has become more severe than ever. Governments all over the world, with their comprehensive rescue packages for aiding banks, have strengthened their implicit commitment to save financial institutions and their lenders at any price. Therefore, for investors it is becoming less necessary to distinguish between banks of different quality. One simply invests money at the bank which offers the highest interest rate.