\^This Although realistically the "too big to fail" banking system was created under FDR. He created the programs Clinton used to funnel loans into the ghetto, and all the small local banks either got bought up or were outcompeted by big centralised banks whose primary customer was now the federal government. Back before the great depression the majority of loans were made through small savings and loans banks who had intimate local knowledge of who was safe to lend to and who wasn't. Megabanks couldn't compete in that market because they had no local connections.