Sunday, October 11, 2015

Robert Reich ranks reform prospects for banks too big to fail: Which candidate's proposals top the list?

The problem

Giant Wall Street banks continue to threaten the wellbeing of millions of Americans, but what to do?

Three solutions

Bernie Sanders says break them up and resurrect the Glass-Steagall Act that once separated investment from commercial banking.

Hillary Clinton says charge them a bit more and oversee them more carefully.

Most Republicans say don’t worry.

The solution favored by Robert Reich

Given all this, Hillary Clinton’s proposals would only invite more dilution and finagle.

The only way to contain the Street’s excesses is with reforms so big, bold, and public they can’t be watered down – busting up the biggest banks and resurrecting Glass-Steagall.

Check out Reich's blog for the rationale.

Scriber has long believed, and opined here, that we need Glass-Steagall back to prevent another financial melt-down -- another one likely to be worse than the last one. Here is one simple numerical reason:

... Back in 2000, before they almost ruined the economy and had to be bailed out, the five biggest banks on Wall Street held 25 percent of the nation’s banking assets. Now they hold more than 45 percent.

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