The strategic use of regulatory reform is no stranger to businesses—especially to the strongest both financially and, relatedly, politically. Such proposals of more regulation are crafted not to benefit the macro economy or even the industry; rather, the point is to enhance a dominant firm’s competitive advantage over rivals. It follows that such proposals are not counter-factual to the thesis that republics are susceptible to the gravitational pull of plutocracy, the rule of wealth. A case in point is the U.S. Trump Administration’s consideration of a legislative proposal to reinstate the main content of the Glass-Steagall Act, which had separated commercial and investment banking such that a bank could not do both.
The full essay is at "A Proposal to Split-Up the Big Banks."
Gary Cohn, former number two at Goldman Sachs, talking to U.S. senators on behalf of the Trump Administration.
(source: Andrew Kelly, Reuters)