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The government rescued RBS only because the public needs the bank to supply credit and to provide a payments system.
Only a few years ago, Europe's biggest banks were clamoring to supply credit at very attractive terms.
After all, they were the ones that continued to supply credit to the economy during the downturn.
But the Fed issued a reassuring statement noting in effect that it would supply credit as needed.
As Lord Turner puts it: "Lending against real estate generates self-reinforcing cycles of credit supply, credit demand and asset prices".
Insurance companies, especially those in reinsurance, pension funds, and hedge funds continue to be willing, at a price, to supply credit protection.
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But the structure of the industry supplying credit and other charge cards faces unprecedented scrutiny.
This drop in cross-border banking is being encouraged by bank regulators, which are pressing banks to shrink but still supplying credit to their domestic markets.
See articleThe French finance ministry scrambled to rescue Crédit Immobilier de France, a small bank specialising in supplying credit to lower-income households.
He continued: "If Britain is going to grow on a sustainable basis, we need smaller banks and more competitive banking focused on supplying credit to British business.
The development bank, partly owned by the United States as well as European countries, supplies credit to the former Soviet Bloc countries as well as newly democratic countries in the Middle East.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com