Agreed the breaking up of the big banks would solve the problem.

Reader comment on: Regulating Banks

Submitted by Lyle (United States), Mar 22, 2012 16:50

I suspect that for many of the big banks the pieces would be worth more than the whole, as parts of the big banks would fall away. Actually start with bringing back Glass Steagall and strengthen it. Make the brokers and dealers distinct as they were in the UK before the big bang there. If the broker is basically an order taker and executor, and provides no advice and has nothing to sell, it eliminates one conflict of interest. Dealers and market makers then would deal only with brokers, but could use a prospectus to sell what they have. One might consider allowing commercial banks to have redefined brokers in their portfolio but no other investment banking would be allowed.

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