Banks have never been very ‘boring’ – NY Fed economist
Banks have consistently innovated throughout history, and regulations have struggled to keep up, Nicola Cetorelli writes
US banks innovated throughout the 20th century, helping them to circumvent regulations even in an era generally thought to have been characterised by “boring” banking, according to a blog post published by the Federal Reserve Bank of New York.
Having dispelled myths around the repeal of the Glass-Steagall Act in a previous post, Nicola Cetorelli goes on to examine why there was so much innovation among banks that were supposedly restrained by the act’s provisions.
He finds that banks found it
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