Reinstating Glass-Steagall just seems like a no-brainer to me. Yesterday's author, Matt Taibbi, is one of many who have made this point over and over again. Financial entities should be able to hold deposits and have those deposits be backed by the federal government. Financial entities should also be able to engage in investment banking that involves more significant risk-taking. But they should not be able to do both. The government shouldn't bankroll Wall Street gambling, and I fail to see how disparate groups like Occupy Wall Street and the Tea Party can't even come together on an issue like this. The only way this should be allowed is if the government also gets to dictate a whole host of other conditions such as limits on and clawbacks for executive compensation, which of course, are steadfastly opposed by Wall Street.
Thanks to my friend Cole Robinson for suggesting this article.
"Why I was won over by Glass-Steagall" by Luigi Zingales
Published in the Financial Times, June 10, 2012
http://www.ft.com/intl/cms/s/0/cb3e52be-b08d-11e1-8b36-00144feabdc0.html#axzz205VCftoP
Eric
it won't let me read it, tells me i have to subscribe
ReplyDeleteDrats. It worked for me the first time. I think you can get access if you google the article title.
ReplyDeletetook a bit and it looks like a 5 year old choose fonts but... http://gonzaloraffoinfonews.blogspot.com/2012/06/why-i-was-won-over-by-glass-steagall.html
ReplyDelete