Dallas Fed President calling for breakup of ‘too big to fail’ banks

With healthcare in the lead right now, any movement on this subject won’t happen immediately but it really needs to be a priority soon enough. The US economy is going to be stuck in low gear for a while courtesy of the poor policy of these banks so let’s change it before the banking lobbyists kill it for good. CNBC:

On regulatory reform, Fisher called for an international agreement to break up oversized firms.

“The disagreeable but sound thing to do regarding institutions that are too big to fail is to dismantle them over time into institutions that can be prudently managed and regulated across borders,” Fisher said in prepared remarks to the Council on Foreign Relations.

One prominent proposal for reform, known as the Volcker rule after Paul Volcker, the former Fed chairman and White House economics adviser who devised it, would limit taxpayer backing for banks whose primary activities are speculative in nature.

“I align myself closer to Paul Volcker in this argument and would say that if we have to (break up banks) unilaterally, we should,” Fisher said.

An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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