D.J. Burke (Letters, June 24) is right on about reinstating Glass-Steagall. but some additional fixes are needed. Require all derivatives without exception to clear through clearinghouses; reinstate the antibucket shop law (about 90 percent of the $600 trillion in derivatives are naked credit default swaps that were illegal before the antibucket shop law was repealed.
Break up the large bank holding companies -- commercial banking, investment banking, hedge funds, insurance, brokerage all separate businesses, no interlocking directorates. Make it illegal for a sitting CEO to serve as chairman of a board of directors. You want a security rated -- go to the SEC -- they contract for the rating, pay the rating firm and bill the issuers. If companies want overseas subsidiaries, they have to be regulated to our rules -- no more going to the United Kingdom to get weak regulation at our expense.
These actions added to reinstatement of Glass-Steagall would clean up the bulk of the bad behavior when combined with shareholders who have control of compensation not just advisory roles.
Kathryn M. Tominey, Benton City