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An Old Skool Banking Idea

February 4, 2010

Simon Johnson’s Economix blog on the New York Times’ site has some notions to chew on regarding too-big-to-fail. His key idea: Banks’ capital ratios need to be increased three or four fold from what’s proposed (and being fought by bankers as too high). What would a 25-percent cap ratio requirement do to “the system?”

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