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Some associates and I are considering launching a new Wall Street reform project. I would appreciate your feedback on the following draft mission statement:

In order to make Wall Street better serve the real economy:
1) Discourage risky, nonproductive financial transactions in the paper economy.
2) Break up banks that are too-big-to-fail.
3) Reestablish the wall between commercial and investment banking.
4) Eliminate governmental subsidies for Big Banks that make it harder for community banks to compete.
5) Promote government-owned public banks such as the Bank of North Dakota.

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Comment Preferences

  •  These read like strategies rather than a mission. (3+ / 0-)
    Recommended by:
    VClib, sonofhud, tardis10

    A mission that could be extrapolated from these 5 items might something like...to redesign federal policies concerning banking and banks to align with the public interest (in whose definition?) such as to reduce public exposure to risk by some specific amount in some achievable time frame.Drafting a crisp, clear, concise, achievable mission is not an easy task.

    Once you do, you might want to break that mission down to a few clear specific measureable goals and then your 5 strategies should map back to those objectives nicely.

    Let all Bush tax cuts expire and , bring on the Sequestration cuts to defense.

    by kck on Tue Dec 04, 2012 at 01:13:15 PM PST

    •  An Amended Version (0+ / 0-)

      Thanks, kck. Good point. How's this alternative?

      MISSION:
      To assure that the financial sector primarily serves the real economy.

      To achieve that goal, we aim to:
      1) Discourage risky, nonproductive financial transactions in the paper economy.
      2) Break up banks that are too-big-to-fail.
      3) Reestablish the wall between commercial and investment banking.
      4) Eliminate governmental subsidies for Big Banks that make it harder for community banks to compete.
      5) Promote government-owned public banks such as the Bank of North Dakota.

      •  On Second Thought (0+ / 0-)

        MISSION:
        To assure that Wall Street primarily serves the real economy rather than the paper economy.

        GOALS:
        1) Discourage risky, nonproductive financial transactions.
        2) Break up banks that are too-big-to-fail.
        3) Reestablish the wall between commercial and investment banking.
        4) Eliminate governmental subsidies for Big Banks that make it harder for community banks to compete.
        5) Promote government-owned public banks such as the Bank of North Dakota.

  •  No more dervivatives beyond the second order. (1+ / 0-)
    Recommended by:
    tardis10
  •  Three simple things would fix most of the problems (1+ / 0-)
    Recommended by:
    tardis10

    First: Add a small sales tax on every transaction.
    Two: Significantly increase granularity in share prices. It used to be an eight of a dollar on the NYSE.

    These two items would get rid of a lot of the high speed trading and brokers placing orders ahead of their customers.

    Three: Forbid any corporation to own another Limited Liability entity either in whole or in part. No more of the parent corporation taking the money and putting the bankrupt subsidiary through bankruptcy. If two corporations want to form a partnership, fine, as they are jointly and separately liable.

    •  In reply to aoeu (0+ / 0-)

      Thanks for the specifics, aoeu. "Granularity" is a new concept to me. That is helpful.

      Right now, however, we're focusing on the mission statement, which needs to be brief and general. We can identify methods for achieving the goals in the mission statement later.

      So your first two points, though helpful for later, may be too specific for the mission statement.

      I assume that the Tobin Tax is a sales tax of the sort you recommend. Please correct me if I'm wrong.

      And your third point may move away from financial reform into corporate reform. No?

      Thanks again.

  •  Are you familiar with nef? (1+ / 0-)
    Recommended by:
    sonofhud

    They do work that that might interest you. Like this:  http://www.neweconomics.org/...

    Also reading John Fullerton (http://capitalinstitute.org/...),Tony Greenham etc. might help you craft your mission statement.

    "George RR Martin is not your bitch" ~~ Neil Gaiman

    by tardis10 on Tue Dec 04, 2012 at 04:42:04 PM PST

    •  No I was not (1+ / 0-)
      Recommended by:
      tardis10

      Thanks much, tardis10. I was somewhat familiar with NEF but not their new financial reform project, which looks great. I also like Fullerton's paper and will try to communicate with both resources about possible collaboration. My associates and I would rather not start from scratch. Thanks again.

      •  The Public Banking conference will (1+ / 0-)
        Recommended by:
        sonofhud

        be in San Francisco this year. (typically late spring) Excellent place to network and learn. There is a lot of untapped energy fomenting around change.
        Fullerton used to post here sometimes but I don't know if he checks his kosmail. Always responds to any queries at the Capital Institute site.
        Best of luck.

        "George RR Martin is not your bitch" ~~ Neil Gaiman

        by tardis10 on Tue Dec 04, 2012 at 08:55:43 PM PST

        [ Parent ]

  •  Reform? How about destruction instead? (1+ / 0-)
    Recommended by:
    Killer of Sacred Cows

    Simply put, we don't need wall street. We don't need stocks, derivatives, or any capitalist bullshit. It's all an artificial construct designed to make the rich richer and the poor poorer.

    End limited liability. End incorporation. End the capitalist overclass.

  •  Outlaw it. (0+ / 0-)

    Make it illegal to do this speculation thing. I'm really at the point where I want Wall Street and everyone who's profiting from it to be punished for the damage they've done to our economy.

    I mean, I know it's a pipe dream, but still.

    "Compassion is not weakness, and concern for the unfortunate is not socialism." - Hubert Humphrey

    by Killer of Sacred Cows on Tue Dec 04, 2012 at 06:11:17 PM PST

    •  Outlaw Speculation? (0+ / 0-)

      Which forms of speculation would you outlaw and how would you do it?

      •  Ideally, all of them. (0+ / 0-)

        No more driving prices up with futures speculation. No more driving profits up with derivatives.

        You buy a stock, you get a portion of whatever the company's profit is once per quarter. Sell it if you like. End of story. Any other activity should be outlawed.

        "Compassion is not weakness, and concern for the unfortunate is not socialism." - Hubert Humphrey

        by Killer of Sacred Cows on Tue Dec 04, 2012 at 07:21:43 PM PST

        [ Parent ]

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