Mancur Olson(‘s) is one of two nobel prize winners in economics in 1979, and his major work (1965) makes an interesting read when thinking about the financial sector. James Buchanan writes about him and his work:
How can the rise and decline of nations be explained? Anyone who seeks an answer will necessarily encounter Olson’s thesis on the critical importance of institutional structure, as imbedded in history—a thesis that is, itself, informed by the logic of collective action. Mancur Olson had a rare ability to take highly abstract but ultimately simple ideas and to apply these ideas to the reality of economic and political development.
Reforming the financial markets might not be about free markets or efficiency, but about how to deal with too powerful institutions that have hijacked our wealth. This book provides some theoretical ideas of what too big to fail means and how we got to where we are.