Sisyphus didn't suffer this much.We need a real and impregnable firewall that keeps one part of the banking system—and the economy—from being consumed when the other goes into flames.The combination of both banking cultures in a single institution—which had been separated for decades by the Glass-Steagall Act of 1933 until the 1990s—brought us to the doorstep of global financial-system collapse a few years ago. If the nation stays on its current path, we could see another crisis.We are approaching a state of affairs in which an oligopoly of a few major institutions dominates our entire banking system. There's little evidence those institutions will share the concerns and dedication of my Uncle Joe—and many like-minded bankers in his time and since. If we truly separate the cultures of commercial and investment banking, the clients of both will prosper.
Wednesday, May 16, 2012
Et tu, WSJ?
Apparently short of fact checkers, the Wall Street Journal turns to an elderly Texas banker for yet another iteration of Glass-Steagall, We Hardly Knew Ye;