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Banking's Moment of Truth -Joe Nocera

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Did YOu know ? "The current fight over additional capital requirements for the banking industry happens to be the most important reform moment since the financial crisis broke... More important than the wrangling over Dodd-Frank. More important than the ongoing effort to regulate derivatives. More important even than the jousting over the new Consumer Financial Protection Bureau," says Nocera. "A real capital cushion would have allowed the banks to absorb the losses instead of the taxpayers. That's the role capital serves.... Banks always want capital requirements to be as low as possible, because the less capital they have, the more risk they can take and thus the more money they can make (and the bigger the executives' bonuses). But so what? Trading some bank profits for a safer financial system is a deal most Americans would take in a heartbeat."

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