Financial reformers go anti-bank
TEXT OF STORY
Stacey Vanek-Smith: This week, the Senate takes a look at the financial reform bill. Some amendments call for a radical restructuring of the nation’s banking system. And some of those reformers are using anti-bank sentiment to justify their strategies. John Dimsdale reports.
John Dimsdale: Senators will propose to cut banks down to size, tax them and even ban some of their products. But Tennessee Republican Bob Corker has already raised the danger of going too far.
Bob Corker: I know there’s lot of populism and it sounds really great that we’re going to take on Wall Street. But I think what we need to remember is we may be taking on the heartland.
Corker says U.S. exporters need banks big enough to compete globally. And limits on bank derivative trading, for example, would merely send that lucrative business overseas. Chicago investment counselor Marshall Front advises Congress to take a longer look at reforms.
Marshall Front: Rather than at a time when populism is white hot and incumbents are fearful of not being re-elected and therefore have to jump onto the bandwagon.
He says banks already have plenty of rules and regulators should concentrate on enforcing them.
In Washington, I’m John Dimsdale for Marketplace.
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