Menu Close

Tag: systemically dangerous institutions

Conservatives and Libertarians should Support the Return of Glass-Steagall – William K. Black

Glass-Steagall prevented a classic conflict of interest that we know frequently arises in the real world. Commercial banks are subsidized through federal deposit insurance. Most economists support providing deposit insurance to commercial banks for relatively smaller depositors. I am not aware of any economists who support federal “deposit” insurance for the customers of investment banks or the creditors of non-financial businesses.

RSS
Follow by Email
LinkedIn
Share