During the Great Depression, financial institutions were reigned in with the establishment of the SEC and the Glass-Steagall Act.
Today, it appears that the most important reforms are not going to occur.
Those most important reforms include the following:
Break Up the Too Big to Fails
Reinstate Glass-Steagall
Implement a transaction tax on securities transactions. This tax would not hurt average investors but would halt the High Frequency Trading Scam that allows the biggest investment banks to make money using technology and proximity to beat the market unfairly.
Reform the SEC's program of relying on self-regulation by the financial industry
These reforms are not excessive and do not undermine "free" markets. Rather, they help ensure that the market is not biased toward particular agents whose moral hazzard endangers the entire system.
Sadly, it appears that these necessary reforms are not going to happen. See Dean Baker's post today, "Vampire Banks Rise Again"
http://tpmcafe.talkingpointsmemo.com/2009/11/23/vampire_banks_rise_again/#more
Subscribe to:
Post Comments (Atom)
-
In 2007, Rick Weiss reported for the Washington Post potential hazards of genetic medicine and the failed regulatory apparatuses designed t...
-
March 11 is the anniversary for the Fukushima Daiichi disaster of 3 nuclear meltdowns, at least one melt through, and a fire in at least ...
-
The weekend edition of the Wall Street Journal reports that PG&E suffered a massive loss of control of the utility's databases, le...
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.