Banking and Finance

How the banking system go to be the way it is

  1. “Not Too Big Enough: How the “too-big-to-fail” banks got that way, and why the current banking reform won’t solve the problem.” By Rob Larson in Dollars & Sense 2010
  2. “The Bankers New Clothes” book published in 2013 by Anat Admati (Prof. of Finance, Stanford University) and Martin Hellwig (Professor of Economics, University of Bonn). This book presents a critique of current “too big to fail” banks and the arguments they present. This is far from a radical document, but big bankers hate it. It aims to demystify banking for non-bankers and it is very accessible to the lay person. The principal change they propose is that banks be required to put more of their capital (equity rather than borrowed funds) at risk. Greater bank equity will make it much less likely that a bank will become insolvent and require tax payer bailout. (You may borrow my copy if you wish to read it – JB)

Alternatives to the Current Banking System

  1. Banking on the Public: Going Postal, North Dakota, and Other Finance Alternatives” by Abby Sher in Dollars & Sense webpage June 2013.  This account of a conference  sponsored by the Public Banking Institute.  The conference considered alternative banking systems: Bank of North Dakota, the only state owned bank in the US, and a call from American Postal Workers and Public Banking institute for a return to a postal bank. The U.S. Postal Service offered simple affordable banking services used by many working class people from 1911 to 1967 when the system was dismantled.
  2. Senators Warren, McCain, Cantwell, and King Introduce 21st Century Glass-Steagall Act.

Band of Rebels Fact Sheets on “too big to fail” banks

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