Saturday, October 10, 2015

Reforming the financial sector



With a probable new global financial meltdown looming in the air as a result of excessive corporate over- borrowing, Hillary Clinton’s sweeping financial reform proposals are commendable. This will not be easy, as Obama himself has learnt the hard way. But then again, the global economy cannot afford another “2008” in less than 10 years. Particular credit deserve her ideas on empowering regulators (and ‘whistle-blowers’); holding banking executives responsible for reckless, and sometimes criminal,  behavior cushioned by taxpayer money; amending the Glass-Steagall Act (separating commercial and investment banking); and taxing the undoubtedly market destabilizing high frequency trading. As said, such steps won’t be easy. In front of her she will meet a brick wall of bankers and republicans. But the filly is well worth a flutter. HH