Wednesday, September 30, 2020

Professor Wilmarth’s Taming the Megabanks

This Friday, Professor Art Wilmarth’s new book, Taming the Megabanks: Why We Need a New Glass-Steagall Act (Cambridge University Press), will be released.  Wilmarth recently published an overview of his work on Duke Law School’s FinReg Blog, a paragraph of which is below: 

Taming the Megabanks contends that we must adopt a new Glass-Steagall Act to separate banks from securities markets. A new Glass-Steagall Act would restore financial stability and ensure that our financial system serves Main Street business firms and consumers instead of Wall Street speculators. Universal banks would be broken up and would no longer dominate our financial system. Shadow banks would shrink substantially because they could no longer fund their activities by offering short-term financial instruments that function as substitutes for deposits. A more decentralized and competitive financial system would provide better services to commerce, industry, and society. 

I’m really looking forward to receiving my copy, purchased for a very reasonable $34.95!  I’ve read many of Wilmarth’s articles, and I’ve always learned a lot from each one.  A LOT!

https://lawprofessors.typepad.com/business_law/2020/09/professor-wilmarths-taming-the-megabanks.html

Books, Colleen Baker | Permalink

Comments

Thanks for highlighting this new book. I'm in the midst of reading Fragile by Design, which makes the exactly opposite argument. There the authors write that the evidence that banks participation in the securities markets contributed to the Great Depression was quite weak.

Posted by: Matthew Bruckner | Oct 12, 2020 6:21:29 AM

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