I think some of the larger banks in America are too big. Because of their prestige, they can depend on the government bailing them out should the need ever come around again since they are all too big to fail. This is greatly unfair to the rest of Americans especially when it was tax-payer money that was used to save them.
There is little reason for large commercial banks to exist. Their sole purpose is to provide a safe place for individuals and businesses to keep their funds while those banks make reasonable loans to their client base. The only reason for commercial banks to be as large as they are is that they are simultaneously engaging in risky investment schemes. Without the complex investment mechanisms there is no need for a commercial bank to sit on, and necessarily control, such large sums of capital.
No, I think that the way that the bank system is set up today is the best way that there could be. I think that we do not need to change it at all, and that they do a great job of managing all of our money to the best they can.
The only time large banks need to be broken up into smaller financial institutions is if they get "too big too fail" or if they become monopolized. Otherwise, there are plenty of banks to offer competition in the United States without one financial institution getting too large. If a business fails, it can declare bankruptcy.
I believe capitalism should be able to reign freely and so the Government should not break the large banks down into smaller banks, however I feel the Government should pass appropriate regulations to make sure the large financial institutions are not taking reckless risks as they did in the 2007-2008 period leading to widespread panic when it went south.