North Dakota Senator Byron Dorgan has it right, as follows:
Dorgan said 3 things are needed to fix the financial system:
One is to separate investment banks and FDIC-insured banks. Second, prohibit FDIC-insured banks from dealing in risky financial instruments on their own proprietary accounts… And third, abolish “too big to fail.” If you’re too big to fail, you’re too big. Too big to fail is what I call no-fault capitalism.
Senator Dorgan was one of eight senators who stood up to oppose the repeal of the Glass-Steagall act in 1999, and said at the time:
I think we will in 10 years’ time look back and say we should not have done this.
There’s more from Dorgan at Zero Hedge.
Tags: Banks, Byron Dorgan, commercial banks, FDIC, Glass-Steagall, investment banks, TARP, Too Big To Fail