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Nonsense and Bad Rules Persist in Banking

While banks and the policymakers that support them claim that banking regulations would harm average Americans, these threats are based on falsehoods and misinformation. Simpler, more effective rules would compel banks to rely more on their own equity, thus forcing them to overcome their addiction to borrowing.

STANFORD – In December, the CEOs of the eight largest banks in the United States participated in a three-hour posturing session before the Senate Banking Committee. It was a disheartening display that showcased the toxic blend of politics and asinine rhetoric that often characterizes discussions about banking.