http://finance.yahoo.com/news/Fed-adopts-plan-to-let-banks-apf-590676590.html?x=0&sec=topStories&pos=6&asset=&ccode=
What does this do to this?
http://market-ticker.denninger.net/
Notice the weasel in here. One part (trading complex financial instruments) should be diverted to hedge funds and other unregulated - and free-to-fail, no-backstopped firms.
The other part (lending) will always be done by banks - you have one on the corner, or a credit union, that will write you a loan, yes?
Sens. Ted Kaufman (D., Del.) and Sherrod Brown (D., Ohio) plan an amendment that would prohibit any bank from ever holding more than 10% of the country's deposits and put strict caps on the debt banks issue.
This is the amendment that I highlighted with two Tickers, one text and one, for the "visually inclined", in video. This amendment deserves to be law right now - one way or another.
Sens. Maria Cantwell (D., Wash.) and John McCain (R., Ariz.) have worked on an amendment that would force commercial banks to separate from investment banks—revisiting the Glass-Steagall Act of the 1930s.
That plus the above would effectively BE Glass-Steagall.
I like that a lot.
The Federal Reserve has adopted a plan allowing banks to set up the equivalent of certificates of deposit at the central bank. The move would help the Fed mop up money pumped out during the financial crisis and prevent inflation from taking off later.
Under the plan, the Fed would offer so-called "term deposits" that would pay interest. Doing so would provide banks with another incentive to park their money at the Fed, rather than having it flow back into the economy.
Once the economy is on firm footing, this would be one of the tools the Fed could use to tighten credit.
The Fed says Friday's action has "no implication for the near term conduct of monetary policy."
