What just happened would not have happened. The Fed, which is charged with regulating banks, just told Citigroup they needed to be more stable before shelling out money to shareholders.
This never would have happened had Larry Summers become chairman of the Federal Reserve. There is absolutely no way he would have signed off on tougher requirements for Citigroup. Let’s all breath another sigh of relief that Summers did not get the job. Sometimes the person in charge does make a difference, and sometimes that difference is positive.
Sure, there will be a wave of commentators saying how this is actually bad for banks and bad for “freedom.” Why these people have any credibility left is beyond me.
The banking system still has a long, long way to go before it gets back to what I would call responsible, but this is a good start.