American-style capitalism has - for ninety years - included bank supervision where excessive lending could cause bank management to be replaced by the government. I worked for a bank in the early 1980s where the Reagan Administration did exactly this.

Intense bank examination of loan underwriting quality and internal quality control has kept the American economy out of Great Depressions. FDIC loan portfolio quality review is similar to FDA quality audits of pharmaceutical companies. They are frequent. And rigorous. It’s the beginning AND end of controlling systemic risk.

Unfortunately, governments have allowed massive Big Pharma companies to sell drugs to consumers outside the FDA review process. Sorry - a metaphor. I mean FDIC has allowed giant lenders to lend money outside the loan portfolio quality review process. The Nonbank industry today is $239 trillion. Dodd Frank has chased all the money out of systemically-safe chartered banking system into the catastrophically dangerous and completely massive nonbank system.