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View Diary: Glass-Steagall Act II -- it's Not (11 comments)

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  •  This would seem to be the simplest... (0+ / 0-)

    ... way of fixing the banks. (Caveat: I'm not a banking expert other than that I know that keeping a lot of money in a bank doesn't enhance my savings any more; not when it's lucky to be getting 1% interest. Remember when a savings account would earn 5.74%?)

    The only amendments I would add to such a change back to the Glass-Steagall policy would be

    a.) Give the banks a period of time -- a couple of years, say -- to make the split and no exceptions.

    b.) Failure to comply will result in jail time for C-level execs and boards of directors.

    c.) No fines that are nothing more than slaps on the wrist and would be paid for by depositors and shareholders, anyway.

    d.) No ability to claims of no guilt. You knew the law, you knew the deadline, if you fail to meet it, you are guilty.

    They have enough money to pull this off and it'd just be too bad (just cut the flood of crocodile tears, bankers, we're not falling for it again) if they had to forgo all raises, bonuses, art purchases, executive suite redecorations, and mergers with other banks for a couple of years to hire financial consultants to orchestrate the split in the least disruptive way.

    IMNSHO, we ought to make banking as boring as possible. Would it really be so bad if we simplified banking to the way it was pre-Reagan?

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