Saturday, January 23, 2010

Risk-Taking in Capital Markets is Incompatible with a Taxpayer Guarantee

The Wall Street Journal weighs in on Obama's idea for banking reform:

Phony populism aside, yesterday Mr. Obama introduced his first serious idea into the debate on reforming the financial system. In calling for an end to proprietary trading at firms with a federal safety net, the President showed that he now understands an important principle: Risk-taking in the capital markets is incompatible with a taxpayer guarantee.

To read more, go here.