As the United States Senate continues to debate the financial reform legislation, it's becoming clearer that any attempt to fix the system has been gutted by political compromise.
As reported here , in order to get it through, they have had to postpone plans that would ban banks from trading derivatives. Also, they are unlikely to stop banks from prop trading which is filled with terrible conflicts of interest that you get when you're trading in shares you're selling and the banks won't be required to have more stringent capital requirements that would stop them going broke. This is not financial reform, it's just window dressing.
Is it any wonder leading economist Nouriel Roubini has warned that these changes are cosmetic. They won't prevent another crisis. Indeed, he warns the crisis isn't over and we might end up in another crisis, similar to what happened in 1933.
How many crises do we need before they overhaul the US financial system?
no comment untill now