President Barack Obama will offer proposals to limit financial institutions’ size and trading activities as a way to reduce risk-taking, an administration official said.
Rules? Rules in the form of the reintroduction of banking reform? The repeal of Glass-Steagall in 1999, allowed those granting credit (lending) and using of credit (investing) to be under one roof. This opened to the door to the same abuses that produced the banking reforms in 1933. Still, reintroduction of banking reform will do little to slow the next round greed-induced profit. Money always finds a way. Excessive regulation only serves to send these activities offshore.
Source: bloomberg.com
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