Elizabeth Warren on the need for 1930’s style banking overhaul today

The 2015 Minsky Conference was held in Washington this week to consider among other issues, the design, flaws, and current status of the Dodd-Frank Wall Street Reform Act, including implementation of the operating procedures necessary to curtail systemic risk and prevent future crises; the insistence on fiscal austerity exemplified by the recent pronouncements of the new Congress; the sustainability of the US economic recovery; monetary policy revisions and central bank independence; the deflationary pressures associated with the ongoing eurozone debt crisis and their implications for the global economy; strategies for promoting an inclusive economy and a more equitable income distribution; and regulatory challenges for emerging market economies.

Elizabeth Warren’s speech on Wednesday is available here by clicking on Wednesday April 15 and then her name to start.

Warren outlines the limited accomplishments to date in reigning in bank fraud and misconduct, as well as the lack of criminal prosecutions and re-surging risks in the securitized loan market.  About 21 minutes in, she lays out the simple but critical steps needed to end ‘too big to fail’ banks as well as misaligned executive compensation rules. Good overview speech of work still needed: “The system is rigged and those who rigged it want to keep it that way.”

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