St. Louis Fed Economist Bill Emmons released a video presentation analysing the complexity of our current banking institutions, regulating the finance industry, and what the best route to take is going forward. Is there a better way?
Emmons describes the issue of “Too Big To Fail” and its ramifications for the country, and whether this problem can be solved. He explains two broad approaches to reform: 1) radical approaches that include breaking up the big banks and creating “narrow” banks and 2) regulatory approaches that include legislation like the Dodd-Frank Act, international accords such as Basel III that cover capital requirements and the establishment of a “death penalty” regime for failing banks.
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