Wednesday, January 27, 2010

The Economist On Bank Reform

Here and it's worth a read. They call it "Glass-Steagall lite."

Clive Crook responds:
Allow me a quibble over nomenclature (ie, the politics). To have this plan referred to as any kind of Glass-Steagall–”lite”, “in the spirit of”, whatever–annoys me because that designation is all about pandering to the view that the repeal of Glass-Steagall caused the crisis. It did not. And this plan (as The Economist’s article explains) does not come close to repealing the repeal.

But the money quote is this:
There are things to be said for the proposal: it’s just that none of them has anything to do with the crisis we have just witnessed.

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