Sir, I enjoy and have profited from John Dizard’s columns, but in suggesting a return to Glass-Steagall he is simply mistaken (“ The US financial industry should listen to leftwing reformers”, December 5).
Yes, investment banking is risky, but lending, however politically popular, can be more so. Far more large banks have been brought down by bad commercial and mortgage lending than by investment banking. When first implemented in 1933-35, Glass-Steagall contributed greatly to a freezing up of capital markets that would be economically disastrous were it to occur today. Market liquidity is critical to today’s economy.
Green Valley, AZ, US
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