Breaking up banks would create the Bell -> AT&T situation. Sure, better than nothing, as at least there are 3 offspring companies. Though the US has no shortage of competing banks. (But the big banks have too much influence, that's undeniable.)
> We basically gave them a big sack of cash
We had no other choice, really. They paid it back.
> and asked them not to do it again.
There is a long list of new regulation overseeing systemic risk related concerns. (We shall see their effectiveness and longevity.)
> No one went to prison and GS went back to paying out bonuses.
Intent is key for successful criminal prosecution, and it's very hard to prove.
The solution is known, and old. A competent proactive expert non-understaffed and non-underbudgeted oversight agency that can react to the changes in the market/industry (eg new products [investment vehicles, etc.] appearing) without Congress.
And serious compliance regulation that creates a paper trail for proving intent. (To deter people from stupid shit.)
> We basically gave them a big sack of cash
We had no other choice, really. They paid it back.
> and asked them not to do it again.
There is a long list of new regulation overseeing systemic risk related concerns. (We shall see their effectiveness and longevity.)
> No one went to prison and GS went back to paying out bonuses.
Intent is key for successful criminal prosecution, and it's very hard to prove.
The solution is known, and old. A competent proactive expert non-understaffed and non-underbudgeted oversight agency that can react to the changes in the market/industry (eg new products [investment vehicles, etc.] appearing) without Congress.
And serious compliance regulation that creates a paper trail for proving intent. (To deter people from stupid shit.)
Aaand [corporate] whistleblower protection.