Small business of-interest and news-to-watch. A discussion of a proposed “fix” to the financial system’s consumer trust.
Excerpt: In 2011, with significant input from others at the Federal Reserve Bank of Kansas City, I proposed that the U.S. financial system be restructured by business lines with accompanying money market reforms. Since then, I often have been asked why I think there is any stomach for a modern version of Glass-Steagall or any other major financial reform when Dodd-Frank has not yet been fully implemented.
I recognize that enactment of such a proposal  is no simple task, but doing so will reduce the subsidy for too-big-to-fail firms and better align their economic incentives and rewards. Importantly, a return to a more accountable financial system is an essential step if we expect to rebuild public trust in our financial institutions and in the government that regulates them. That trust can be reestablished and accountability can be put back into the system so that the banking industry can win without the rest of us losing.