  Gringotts Wizarding Bank is well known as the only financial institution in
all of the Wizarding UK as documented in the works recounting the heroics of
Harry Potter. The concentration of power and wealth in this single bank needs
to be weighed against the financial stability of the entire Wizarding economy.
This study will consider the impact to financial risk of breaking up Gringotts
Wizarding Bank into five component pieces, along the lines of the
Glass-Steagall Act in the United States. The emphasis of this work is to
calibrate and simulate a model of the banking and financial systems within
Wizarding UK under varying stress test scenarios simulating rumors of Lord
Voldemort's return or the release of magical creatures into an unsuspecting
muggle populace. We conclude by comparing the economic fallout from financial
crises under the two systems: (i) Gringotts Wizarding Bank as a monopoly and
(ii) the split-up financial system. We do this comparison on the level of
minimal system-wide capital injections that would be needed to prevent the
financial crisis from surpassing the damage caused by Lord Voldemort.
