Optimal Governance of Capital Markets


Banks have skated on thin ice. They have multi-leveraged through hedge fund subsidiaries to circumvent regulatory minimum capital requirement to take huge leveraged bets against American households against each other. This has bankrupted households, institutions and governments. Banks now have credit left to fund real businesses that create jobs. A Global Trust (a new bank) and Safe Banking existing banks) proposed in my previous memos are necessary to thwart the vampires of capitalism.[optimal governance of capital markets is very crucial to pull the economy from the rut where the companies (HCs) have driven it via their market-making subsidiaries.

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