Friday, July 09, 2010

The Kanjorski Surprise - Now It Gets Interesting

The Kanjorski Amendment makes it clear that system risk must be assessed and dealt with. And it assigns clear responsibility for this issue -- along with a cut and dried list of remedies.

The bank lobbyists, it turns out, missed one.  They and their congressional allies were able to gut the Volcker Rule, the Lincoln Amendment, and almost everything else that could have had a meaningful effect on the industry.

Kanjorski gives federal regulators the power and the responsibility to limit the activities or even break up big banks if they pose a "grave risk" to the financial system.

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