Good article which points out a number of needed financial reforms. Also, an shot over the bow of Money market mutual funds industry:
"One is the potential for problems in the huge industry of money market mutual funds, which operates “in the shadows of the banking system,” he said. Although these funds are typically managed conservatively, he said, they are vulnerable to runs, as occurred when Lehman Brothers collapsed.
“Because they are not subject to reserve requirements and capital requirements, they are a point of vulnerability in the system,” he said. “It is really interesting that they did so much lending to European banks. They had to pull back a lot, aggravating the pressures on the European banks.”
Money market funds held $2.63 trillion as of last Wednesday, and, Mr. Volcker said, many people mistakenly think that these funds are as safe as bank accounts. But the safeguards on bank deposits — strong bank capital requirements and federal deposit insurance, for example — do not exist for most money market funds. There is also little official surveillance of the funds’ investment practices. "
http://www.nytimes.com/2011/10/23/business/volckers-advice-for-more-financial-reform.html?partner=rss&emc=rss
Comments
1) He is absolutely correct.
2) Yes, they should.
3) No, they won't.
Do people listen to her? No.
Does she look like a librarian? Kinda.
Additionally, whether one agrees with Michael Moore or not, amusing interview on CNBC yesterday, where they wouldn't even let him into the exchange to be interviewed - he had to be interviewed a couple of blocks away.