Bank Regulation

Reader comment on: A "Reasonable Profit'
in response to reader comment: Should we break up cartels?

Submitted by David Moran (United States), Feb 24, 2020 17:19

I believe that banks should be kept small so that competition is encouraged. I would bring back Glass Steagall and limit insured deposits to no more than 5% nationally per bank. I would also require that the only permitted capital for capital ratio regulation be securities issued by the United States Treasury. Capital ratios should be a minimum of 20%. Banking used to be for slow and careful plodders. It should become so again. I would also limit interest rates charged on loans and credit cards. We managed quite well with these kinds of rules in the past, and all of them limit risk from bad bank behavior.

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