candooman

Using Anti-Trust Law to Break Up 'Too-Big-to-Fail' Banks

How about reinstituting the Glass-Steagall Act? Prior to repeal in 1998, that Act prevented the banks from growing too big and from putting depositor's money at great risk (it also protects FDIC). Without big funds, the banks could not have bought the toxic assets and expecting investors to buy it from them....which in the end the invosetors did not. AIG issued the CDS' thniking it was a safe bet based on historic data on mortgages from pre-repeal of Glass-Steagall. With the Glass-Steagall in place, no bank, commercial or investment could have grown to too-big-to-fail.