Comment: Sound Banking System

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Sound Banking System

Canada never "liberalized" its banking system the way we did. Canadian investment & commercial banks are separate. We on the other hand, in the infinite wisdom of our "leaders", repealed the Glass–Steagall Act.

John McCain argued we needed to reinstate Glass–Steagall Act to reverse "the unintended consequences of leaving investment banking commingled with commercial banking". Nonsense - the consequences were fully intended by those who repealed it.

Paul Volker wanted to re-instate a version of the Act now referred to as the Volker Rule. http://online.wsj.com/article/SB1000142405270230382220457746...

He focused on derivative trading. Those Wall Street executives who funded President Obama's election did not like this. So, they pressed to push Volker aside in favor of Timothy Geithner, one of their own.. and Volker was emasculated. http://www.bloomberg.com/news/2012-12-13/u-s-banks-to-make-a...

The rest is history. http://dealbook.nytimes.com/2009/11/12/10-years-later-lookin...

"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo