Tax expenditures favor the banksters.

A good article describing most of the problems of the banking industry. To sum it up: bankers think that they are different and special and the MM model does not apply. They believe more leverage allows them to "do God's work."

Interesting conclusion that tax expenditures are the root of this problem. Eliminating the debt interest deduction would go a long way to lowering leverage of banks.

What Jamie Dimon Won’t Tell You: His Big Bank Would Be Dangerously Leveraged � The Baseline Scenario