sleepless_on_wall_street

Preview from Europe: Geithner Fails to Deliver

I fear there is too much interest in saving individual banks and bankers and not enough focus on addressing reform of the system. It is obvious that at least some of the major banks need to be restructured. We need to develop a policy that:

(1) Forces reorganization of insolvent mega-banks each into several individual banks (none too big to fail).

(2) Separates investment banking and commercial banking (Glass/Steagall like).

(3) Does not allow banks to enter any financial arrangement unless it is (a) subject to regulatory audit, (b) publically traded on a regulated exchange or (c) with the Federal Reserve.

(4) Retricts mergers among banks to prevent any too big to fail institutions in the future.

Maybe some other readers will want to argue against this or to add to the list. These are some of the important issues that should be debated.