Let's Get The Banks In Check Before The Bleeding Gets Worse

In my last column, I addressed the emerging consensus about how to overhaul bank regulation. My point was that policymakers need to keep their eye on the big picture--to design a financial system that reliably serves the real economy. Unfortunately, the agenda seems to be how best to bail out existing banks, recapitalize the Federal Deposit Insurance Corp., and further "marketize" a shaky financial economy that was too marketized, thank you, in the 1980s. What, then, to do?

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