Bank reform: Getting the policy right

posted by
November 17, 2011
Adam Smith Institute
by Eamonn Butler  
Posted in Commentary

"The Independent Commission on Banking (ICB) -- set up by George Osborne -- was told to work out ways to make the banks more secure and avert future banking crises. Their first suggestion was to split up the banks into 'safe' high-street and 'risky' investment operations. Then load them with higher reserve requirements, so they have to keep a bigger cushion of 'safe' assets. Both prescriptions are wrong." (11/17/11)  

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