Thursday, August 16, 2012

Former Citi Boss Wants Big Banks Cut To Size

So that tax-payers money are less at risk of greedy behaviour. Essentially he wants investment banking and commercial banking to be carried out by separate institutions. Or if you are familiar with US legislation, to bring back the Glass-Steagall Act. The nice thing about this proposal is that it would reduce systemic risk because we would have fewer and smaller "too-big-to-fail banks". More on this later.

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