Bloomberg reports Fed Urges Congress to Ban Banks From Buying Stakes in Companies.
Specifically, the Fed urged Congress to repeal the section of the Bank Holding Act that allows Wall Street firms to make investments in non-financial companies.
Hmmm. What about the Fed buying stakes in companies, state bonds, or in fact anything at all?
My position is there should not be a Fed in the first place. Elimination of any form of QE would be a small step in the right direction.
In regards to banks, I would eliminate fractional reserve lending (which by the way would not stop loans). I would also prohibit banks from lending any money available on demand. Fractional reserve lending and the lending of money available on demand both constitute fraud.
What banks do with their profits should be up to them.
Mike “Mish” Shedlock