Glass-Steagall Revival Wouldn't Curb Crises, Fed Gov. Says

Law360, New York (December 4, 2012, 2:50 PM EST) -- The Federal Reserve's point man for regulation on Tuesday said a return to the separation of investment and traditional banking would not have prevented the financial crisis, adding that a cap on banks' nondeposit liabilities may be a better way to protect the financial system.

In a speech at the Brookings Institution, Fed Gov. Daniel Tarullo said that a return to the Glass-Steagall Act, the Depression-era law which separated investment and traditional banking, would be an ineffective tool in protecting the financial system from the failure...
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