New at Reason: Anthony Randazzo on Obama’s Misguided War on Wall Street

February 9, 2010

In the past few weeks, President Barack Obama has proposed a harsh new liabilities tax targeted at the top 50 or so financial firms and disastrous new limits on how banks may be formed. That second proposal would effectively reinstate the wall of separation between commercial and investment banking that was first erected with the Glass-Steagall Act of 1933 and later repealed by the Financial Services Modernization Act of 1999. In other words, writes Reason Foundation Director of Economic Research Anthony Randazzo, Obama is threatening to handcuff or dismember the very banks that are now needed to provide credit to corporations, small businesses, plants, and families.

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