Allan Meltzer, Ph.D., American Economist, Senior Fellow, Hoover Institute, and author of a three-volume history of the Federal Reserve, describes working with U.S. Senators Sherrod Brown (D-OH), and David Vitter (R-LA) to help write a bill that would downsize banks “too big to fail,” to protect the public and smaller community banks by helping to level the playing field. He explains that Switzerland has two giant banks much larger than the Swiss economy, and could not be bailed out, and points out that these banks are required to have 19% equity capital, forcing them to think differently about their practices, and states this is what the U.S. should do. Meltzer recalls the Bernie Madoff debacle, and some lawyers bragging to him about circumvention regulations while staying inside the law.
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