interesting how AP wrote this one up
if they were concerned with the viability and health of the USA banking system including the safety of our deposits and also to lessen the risk to the government’s (taxpayers’) deposit insurance programs.......the AP would have favored this proposal outright.
but if, as it seems, they don’t favor it... why? well, there’s only one source for opposition to reinstituting Glass Stiegle... the major NY banks ... who enjoy being able to, in effect (if not legimately) are able now to speculate/invest big-time with our deposits (while letting the taxpayers take the risk of any significant failures or losses)
just sayin....
Oh, privatize the upside, socialize the downside - is that what you mean?
I'd favor a middle road. Banks may apply for an exemption to Glass-Steagall, but in doing so, they also need to set up their own alternative to FDIC and forfeit claims to bail-out money in the event of failure.
Outfits like J.P. Morgan and Goldman Sachs are big enough to set up self insurance funds. They may partner with Swiss and other international banks to do so if they wish.
Don’t forget Wells (San Francisco) and BofA (Charlotte).