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Discussion: (5 comments)

  1. Wayne Abernathy

    This is really a confused position by Ryan, if that really is his position. It feels and sounds more like a developing position rather than a matured view. For example, he says that DFA goes in the wrong way, and then supports the Volcker Rule, a key element of DFA and its intrusion into the market place.

    I think that Ryan is a more careful thinker and supporter of market discipline, based upon other things he has said on other issues. The more he considers market discipline versus yet another round of major government intrusion in the market place, the more, I suspect and hope, he will see the follies of government-directed size control of the banking industry (or of any industry).

  2. Really, there’s no need to legislate a break-up of mega-banks. What’s needed is an end to the mercantilism – the so-called “crony capitalism” – that the democrats (and “moderate” republicans) have worked hand-in-hand with companies like GE and Goldman-Sachs to develop. Next time the banks look to fail, LET THEM. The whole economy will win as over-priced bubbles burst and those who have been priced out of those markets get back into them. The losers will hurt, but not for long, as the economic recovery will lift them back up as well. As long as the government makes “mega-banks” profitable by shoring up their weaknesses, it creates unfair advantage for them (as opposed to fair advantages which would be purely market-derived due to their size), and makes them top-heavy while draining resources from the economy via the special subsidies paid for by our taxes.

  3. Rob Benton

    Why not make the FDIC insurance premium charged for the bank deposits be proportional to the net risk imposed by a given bank on the financial system?

    1. Wayne Abernathy

      Rob, that is the law. Risk-based premiums have been in effect for several years.

  4. i agree with paul ryan

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