Dec. 7 (Bloomberg) -- One of the great debates to emerge
from the financial crisis is whether the U.S. Congress should
resurrect some form of the Depression-era Glass-Steagall Act and
bring back the separation of commercial and investment banking.
It should, but not for the reasons usually cited.
Put aside the tired arguments about whether the law’s
repeal in 1999 caused the crisis. It did help banks deemed too
big to fail get larger, but the crisis had no single proximate
cause. We would have systemically dangerous financial
institutions even if the law had stayed in place.