Clinton’s last mistake

If we allow ordinary banks that take deposits and lend money to continue to participate in riskier investment banking, in the knowledge that if things go pear-shaped a government bail-out will be available, there is virtually no limit to the risks bankers will take. It is a classic moral hazard. Heads they get the profits, tails the taxpayers pay for the losses. The US should never have repealed the Glass-Steagall statute that separated commercial from investment banking.


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