Statement by John Berlau, Competitive Enterprise Institute Senior Fellow:
Rather than restrict services banks can provide, the White House and lawmakers should focus on increasing competition in the banking sector. Bringing back the Depression-era Glass-Steagall separation of commercial and investment banking operations is playing with fire. Repeal of Glass-Steagall lessened the severity of the 2008 financial crisis by allowing commercial banks to immediately absorb failing investment banks. Regional banks benefited from the repeal by being able to offer their customers banking, brokerage, and insurance services all under one roof. The solution for our banking woes lies in innovation like financial technology, not resurrecting failed restrictions from the Great Depression.