From Bloomberg: We were as surprised as everyone to hear
what U.S. Representative Paul Ryan of Wisconsin told constituents at a meeting
on May 4.
“If you’re a bank and you want to operate like some nonbank
entity like a hedge fund, then don’t be a bank,” the House Budget Committee
chairman and the Republicans’ leading policy wonk said. “Don’t let banks use
their customers’ money to do anything other than traditional banking.”
We agree. Although Ryan didn’t say so, he was endorsing the
Volcker rule in the Dodd-Frank financial reform law. Inspired by former Federal
Reserve Chairman Paul Volcker, the rule is supposed to stop federally insured
banks from making speculative bets for their own profit -- leaving taxpayers to
bail them out when things go wrong.
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