By Shanthi Bharatwaj, The Street

NEW YORK (TheStreet) — Don’t expect regulators to break up big banks anytime soon. They are hoping that the market will do it for them.

“Through regulation, stress tests and Basel Capital standards, they are going to make life uncomfortable for big banks,” according to KBW political analyst Brian Gardner. “The multiples of large banks already lag that of regionals. What regulators would like to see is shareholders step in and force bank managements to break up their banks,” he says.

The call to break up big banks has strengthened after Federal Reserve Chairman Ben Bernanke admitted for the first time at a recent conference that “Too Big to Fail is not solved and gone. It is still here.”

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