A return of the Glass-Steagall Act has been suggested by US policymakers and commentators as a way to reduce risk in financial markets. This column argues that the legacy of separate commercial and investment banks actually made the crisis worse. Europe should not follow these proposals but should instead concentrate on strengthening the capital reserves of its banks.
Eugene White, 02 March 2010
Where do the real causes of the global financial crisis lie? This column argues that that a dispassionate examination is needed in order to properly reform the banking system. As the Glass-Steagall Act of 1933 illustrates, a mad dash for regulation where special interests can manipulate popular outrage is a recipe for cooking up the next financial disaster.
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