[vkou]

If they don't actually own the mortgages that they issue, and instead sell them on the credit markets, then neither big nor small banks overleverage risk.

As I understand it, it doesn't matter if they are Chase, or BECU - most banks don't actually own any of the mortgages they issue.

The problem in 2008 was the fraud, the irrational exuberance, and really dumb investments by the investment branches of a few investment banks. The retail arm of, say, Wells Fargo, which issued a whole bunch of shitty mortgages was fine.

Whether or not you think that investment branches of banks deserve to be bailed out is an exercise for the reader.