When (predictably) asked by socialist Senator Bernie Sanders (I-VT) about what additional taxes and regulations should be dumped on our nation’s financial system, Fed Chairman Bernanke made a remarkable statement, which flies in the face of current liberal dogma:
“I think Glass-Steagall is not the solution because, as we saw in the crisis, investment banks and commercial banks separately got into trouble.”
Just last week, Senator Tom Harkin (D-IA) introduced a bill to bring back Glass-Steagall. I guess The Bernanke just stuck a fork in that one…
Bernanke went on to suggest that a primary way to deal with “too big to fail” is to require higher capital requirements for larger banks.