"Is the president finally getting serious about real financial reform? Last Thursday, Obama called for the biggest regulatory crackdown on banks since the 1930s, proposing strict limits on the size of financial institutions and a ban on risky activities such as proprietary trading and internal hedge funds." So writes Marshall Auerback in a new policy paper. Although the proposed regulations are a good start, Auerback argues, "a more broadly based approach, which incorporates all financial services intermediaries, might ultimately be required."
Please read Marshall Auerback's timely new paper (PDF, 5pp.).