Question of size

Commenter at Yglesias' Financial Innovation Takes the Homework out of Banking...

...it’s alway interesting to me to see the cognitive dissonance among the left wing on these type of issues. When it comes to banks, smaller is better, because “when institutions get really big they can’t really be doing much homework,” and instead “things need to be handled through bureaucratic processes and rules and formulae”. And this is bad in some way or another. Meanwhile, they continue to assert that we ought to be increasing the size of the very biggest institution we have - the US federal government - as if none of what they say about big banks applies to the government. What I can’t understand is, why can’t people on the left see that the issues with Bank of America being too big are highly magnified with the federal government?