Are Large Banks Now Too Big to Foil?

Could the credit crunch end up being a good thing for some of the investment banks that looked vulnerable when markets were falling apart?

Amid last year's meltdown, firms like Merrill Lynch, Goldman Sachs, Morgan Stanley and J.P. Morgan Chase's investment bank faced uncertain futures. They were taking capital-crushing write-downs and faced difficulties funding themselves in wholesale markets. In addition, there was concern that governments might one day respond to their excesses by restricting activities and even breaking them up into smaller institutions.