Turn back the clock!

Reader comment on: WSJ on Corzine

Submitted by Fast Eddie (United States), Nov 1, 2011 13:11

The WSJ was a big supporter of the massive banking deregulation pushed by Pres. Clinton, Robt Rubin at Treasury and Greenspan at the Fed that killed the Glass-Steagal Act which separated regular consumer banks from investment banks, the latter being the only ones up to that time which were permitted to risk their capital virtually any way they wished. In 2008 we saw how well that worked out as taxpayers had to bail them out. And then, to compound this stupidity, Paulson at Treasury and Geithner/Bernanke at the Fed converted outfits like Goldman Sachs into "banks" so they could borrow directly at the Fed window, further putting taxpayers at risk.

So, how about this: Why don't we just return to the standards and regulations, including the Glass Steagal Act and capital reserve requirements, which worked quite well for over 50 years?

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