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Elders of Wall St. Favor More Regulation
Why don't they put their money where their mouth is and hire their own team of lobbyists to combat the Goldman Sachs lobby.
Should commercial banks be able to trade securities for their customers or, if the government is going to guarantee your deposits, should you be able to engage in speculative endeavors?
What if banks had a choice -- those that wish to have their deposits guaranteed and protected have to work within certain safe boundaries -- those that wish to operate outside those boundaries are not entitled to any tax-payer bailout money or similar government managed restructuring.
A truly free market with the option for government protection as long as you operate in a conservative and prudent manner.
By LOUIS UCHITELLE
Published: February 16, 2010
Put aside for a moment the populist pressure to regulate banking and trading. Ask the elder statesmen of these industries — giants like George Soros, Nicholas F. Brady, John S. Reed, William H. Donaldson and John C. Bogle — where they stand on regulation, and they will bowl you over with their populism.
They certainly don’t think of themselves as angry Main Streeters. They grew quite wealthy in finance, typically making their fortunes in the ’70s and ’80s when banks and securities firms were considerably more regulated. And now, parting company with the current chieftains, they want more rules.
While the younger generation, very visibly led by Lloyd C. Blankfein, chief executive of Goldman Sachs, lobbies Congress against such regulation, their spiritual elders support the reform proposed by Paul A. Volcker and, surprisingly, even more restrictions. “I am a believer that the system has gone badly awry and needs massive reform,” said Mr. Bogle, the 80-year-old founder and for many years chief executive of the Vanguard Group, the huge mutual fund company.
Why don't they put their money where their mouth is and hire their own team of lobbyists to combat the Goldman Sachs lobby.
Should commercial banks be able to trade securities for their customers or, if the government is going to guarantee your deposits, should you be able to engage in speculative endeavors?
What if banks had a choice -- those that wish to have their deposits guaranteed and protected have to work within certain safe boundaries -- those that wish to operate outside those boundaries are not entitled to any tax-payer bailout money or similar government managed restructuring.
A truly free market with the option for government protection as long as you operate in a conservative and prudent manner.