Former Federal Deposit Insurance Corp. Chairman Sheila Bair talks about efforts by some U.S. banks to limit the reach of the Volcker Rule and market regulations. Bair, is now a senior adviser at Pew Charitable Trusts. Here is a direct video link.
The issue is very simple: investment banks who do not like observing the rules and controls that serve and protect the public purse, should step away from tax-payer backing and live and die by their own risk management.
It is the insidious underwriting of financial firm profits with public funds that has been a fatal flaw undermining democracy and free market forces the past 20 years. This cord must be cut.
Student loans are one of several socially significant areas where government subsidized guarantees on for-profit-loans from banks are enabling debilitating impacts on young people, household formation, the birth rate and the stability of our economy as a whole. See why here: Fed Student loan focus shows recognition of growth risks
;
