I gotta say... Robert Rubin was on NPR, (HERE)
and says we need to do ANYTHING (something), but FAST...
Might I remind our readers (ha-ha all zero of them...) that
it is the FAULT of citicorp and other commercial banks that we are in this mess.
It was the banks and financial institutions of this country that insisted we change
the bankruptcy laws of this country, so that THEY could recover more assets from those in trouble.
Now, the industry that first introduced the ATM as a convenience to the consumer, demands that we pay Through THE NOSE for the ability to save the institution to save money and jobs.
Essentially, we have a problem. Or, more accurately, "Houston (read Washington) we have a problem"...
The fee based strategy that has fueled the growth of the financial industry, as well as the concept of "universal default" has caused more pain to the average consumer, then George Bush's conscious after realizing he'd be forever blamed as the creator of the IRAQ 100 years war.
REFORM is urgently needed. Doing this piecemeal is much more dangerous then juggling chainsaws for a beginner. Unless we RADICALLY re-structure our government we will be unable to accomplish anything...
Also a problem was the fact that the Glass (steingold) act of 1933 was repealed, allowing banks to own brokerage companies, (Mostly due to Mr. Rubin's efforts!--what a payoff as ceo of citicorp)
I think a great deal of the damage that has been done to our country's banking system has come since this firewall was repealed.
cheers
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