Bottom up organizations don't have whistle blowers

John Allison's The Financial Crisis and the Free Market Cure describes the BB&T Bank and its operating style which appears to be the polar opposite of 'Too Big To Fail' top down directed major banks that are poison to their customers, employees and ultimately shareholders. James Stewart's They Exposed a Scandal But Merited Just a Footnote  describes how whistle blowers are contained at Wells Fargo. I'll bet BB&T's bottom up style doesn't have whistle blowers because the problem is noted and fixed long before it gets to the point someone thinks its necessary to go report outside.

Expect investors to determine Wells Fargo prospects are so bad it needs breaking up

Wells Fargo Tests Justice Department's Get-Tough Approach, so do investors care? On the margin yes and that's important.  The whole Too Big To Fail bank sector is in a dull patch for investors, dull enough for G.E. to sell out it's finance assets and thus get out of the extra bank regulation hindering it's industrial products with sensors reporting performance business.  Frankly, any TBTF entity should look at itself with the idea of spinning off units to take themselves out of government's dead hand of scrutiny.  Having Senator Elizabeth Warren chew you out publicly is bad enough. But publicly defending such a loser business model focuses investors on the idea that if Wells Fargo's prospects are so bad that they have to resort to playing games then its needs breaking up.

The Economist September 17th 2016  Free Exchange | Stealth socialism:

Passive investment funds create headaches for antitrust authorities

Passive funds moderate reactions because they mechanically work at keeping a sufficient percent of company's stock in the portfolio to best represent its industry position and not its prospects. Yes these funds react but possibly not enough to cause active hedge funds to  invest enough to force a break up.

FAIR GAME | Gretchen Morgenson

Your Fund Has Your Say, Like it or Not

Brings up the point that Mutual Funds vote with management and so they too would be slow to react to Wells Fargo's poor prospects as well, especially if it was such a dullard that it had yet to determine the poor prospects of all TBTF institutions.

Require Too Big Too Fail Banks spin off into units controlling assets less 1% GDP

At Banks, the Buck Stops Short describes the Wells Fargo cross selling scam which as an investor, such as Warren Buffet, is very telling for the following: Aren't there profitable win win banking opportunities to be pursued?  There is a crying need for inexpensive money transacting systems and not for more bricks and mortar outlets in high income towns. The Federal Reserve would be doing a favor to Too Big Too Fail banks by requiring them to spin off into portions controlling assets of less than 1% of gross domestic product, roughly $200 Billion, so that they aren't too big to fail. Consider John D Rockefeller's observation to shareholders when his giant Standard Oil was broken up in 1911 that the pieces would be all together more valuable than the original whole because the favor would come from, in the bank's case, the focus management would have on real business instead of bankrupting schemes to diddle customers and pay themselves bonuses for having done it.