Good piece by Gretchen Morgenstern in the New York Times about how former Fed Governor Kevin Warsh doesn't think Dodd-Frank does enough to rein in the banking oligopoly.

I particularly like the connection he makes between policies favoring the big banks and our continuing, pernicious unemployment:

"CIRCLING back to the pernicious effects of large and politically interconnected banks, Mr. Warsh makes a direct link between the favors handed to these institutions and our disturbingly high unemployment rate. Small and medium-size banks, after all, are at a competitive disadvantage to the big guys, so they are less able to lend to companies of modest size, which do so much of the hiring in this country.

“The policy has favored large global banks and disfavored small and medium-sized banks,” he said. “So I’m not surprised that real economic and job growth that should come from these enterprises is still lacking. Our failure to have a dynamic competitive banking system is a partial explanation for the weakness we are seeing.”
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