The CEO of Morgan Stanley, James Gorman, has published an article in the Financial Times today arguing against the Dodd-Frank Act. Gorman contends that Dodd-Frank has numerous weaknesses that should be addressed, but that now is not the time for radical change, such as a return to the Glass-Steagall era. Instead, he thinks there should be some “common sense” changes that maintain protection for the economy, but loosen the most onerous restrictions so that banks can better conduct the lending and investing that help the economy keep moving.
FINSUM: It is very unsurprising that a CEO of one of the largest US banks does not want to return to Glass-Steagall. Furthermore, Gorman’s assertion that the repeal of Glass-Steagall “had nothing to do with the financial crisis” is absolutely preposterous.