Choose monetary policies that maximize
Require mandatory credit counseling before individuals
declare bankruptcy. Require individuals with larger incomes and larger
assets to repay more of what they owe when they file. Per Peter Swire, and as Daniel Prieto notes, institute "a $50 cap and automatic dispute resolution for identity theft losses, similar to the basic anti-fraud provisions for credit cards."
Centralize all federal financial regulators and regulations in one agency under control of the elected Attorney General, with oversight by the House to prevent corruption driven hirings and firings. Quadruple the number of financial regulators and investigators. Fire and replace all regulators who fail to regulate according to the law. Implement a 0.21 percent financial transactions tax on all financial instruments. Eliminate limited civil and criminal liability protections for all entities failing to pay or collect the transactions tax. Enact tariffs or other costs on nations that fail to enact a similar tax. Limit all financial institutions to thirteen-to-one leverage ratios in bad times and eight-to-one ratios in good times. Require regulations applying to one financial instrument to apply to all similar instruments, regardless whether labels differ. Create new transparency rules. Turn government-supported enterprises into nonprofit government agencies, then slowly break them up and sell them. Charge banking entities having more than $470 million in deposits or 0.19 percent of national deposits an additional $22 of deposit insurance per year, per each $1000 in balances (counting all entities with their parent entities). Strengthen SEC disclosure rules and enforcement. Allow bankruptcy courts to alter home mortgage terms. Prohibit mortgage lenders from repackaging loans. Eliminate FHA housing insurance. Require all publicly traded corporations having assets greater than $6 million or gross receipts greater than $8 million to make their tax returns public.
Require all public high school students to take a risk-neutral personal finance course and require all public high schools to provide such. Prohibit the federal government from suing states and local governments to protect predatory financial corporations. Prohibit all bailouts not getting equivalent or greater market rate equity in return. Unwind bankrupt financial entities with no compensation given to equity owners. Unwind any too big to fail entity. Prevent investment banks from having limited liability protections.
Prohibit U.S. banks from doing business with
shell banks or businesses involved in money laundering. Enact sanctions on nations
cavalier about banks doing business with shell banks or
businesses heavily into money laundering. Support international efforts to reduce
money-laundering, tax evasion, and rogue banking. (Rich criminals say it
would violate their right to privacy. Too bad. Their right to criminal
privacy is outweighed by the rights of others to protection from crime
and by the benefit created by preventing parasites from profiting. Almost no
one complains that the government has access to the financial records of
ordinary wage earners, individuals who cannot afford battalions of lawyers to
defend themselves. Yet financial criminals expect that they should get
special privileges to do harm.) Repeal the Private Securities Litigation "Deform" Act, Gramm-Leach-Bliley Act, Commodity Futures Modernization Act, and legal elements of the National Homeownership Strategy. Ban futures trading for all commodities except food. Prohibit any entity that participates in non-food offshore futures trading from importing anything into the U.S. Require all states, Washington DC, and Puerto Rico to appoint a mortgage regulator. Ban all government contracting with all inverted corporations, including when it overrides trade agreements. Ban all federal contracts with entities that require employees to sign contracts requiring legal conflicts be resolved through arbitration. Require credit card companies to give customers at least 23 days to make a payment before adding late fees. Prohibit credit card companies from increasing interest rates on existing balances except when a payment is at least 30 days late. Prohibit credit card companies from charging interest exceeding the inflation rate plus 12 percentage points. Prohibit credit card late fees larger than $20. Pass H.R. 3221, banning federal contracting with companies engaging in fraudulent practices.
Ban naked short selling and all other forms of selling without ownership. Ban securitization. Require all banking entities to list all assets and liabilities.
Increase the top corporate tax rate at publicly traded corporations to 44 percent, except at those corporations that pay no more than nine times national median family income to any employee or individual subcontractor in all forms of renumeration. Lower the top tax rate at these latter corporations to 22 percent. Require all renumeration above nine times median family income at the former to be severely restricted stock with only five percent transferable per year. Lower the top corporate tax rate of non-publicly traded corporations to 22 percent. Restore most of Glass-Steagall.
Per Elizabeth Warren: Create a financial product safety commission.
Per William Greider: "Restore the boundaries between commercial banking and investment banking... [a]ssign the Federal Reserve's regulatory role to a new public agency that is visible and politically accountable... [r]e-enact the federal law against usury."
Per Robert Reich: "Credit-rating agencies should no longer be paid by the companies whose issues are being rated; they should be paid by those who use their ratings... Institutional investors like pension funds and mutual funds should not be getting investment advice from the same banks that profit off their investments; the advice should come from sources without a financial stake... investment banks [must] return to being partnerships and the capital on their books be their own, not yours or your pension fund's..."
Per George Soros: "The issuance and trading of derivatives ought to be as strictly regulated as stocks. Regulators ought to insist that derivatives be homogenous, standardised and transparent." Ban the selling of new credit default swaps and CDOs. Prohibit entities with more than $400 million in assets or deposits from owning existing credit default swaps. Create a new Pecora Commission to investigate and prosecute high-cost financial crimes. Ban leveraged buyouts. Strictly regulate futures contracts in industries where cartels or oligopolies or both exist, especially oil. Require that these futures regulations minimize prices for consumers.
Per Amar Bhide, "revive the radical idea of narrow banking and tightly limit what banks (and any other entities that raise short term deposits from the public) can do: nothing besides making loans—after old-fashioned due diligence— and simple hedging transactions..."
Per Willem Buiter: "Regulate all systemically important highly leveraged financial enterprises, whatever they call themselves: commercial bank, investment bank, universal bank, hedge fund, SIV, CDO, private equity fund or bicycle repair shop.
Regulate all markets for systemically important financial instruments.
Regulate all systemically important financial infrastructure or plumbing: payment, clearing, settlement systems, mechanisms and platforms, and the associated provision of custodial services. Do it all on a cross-border basis... First, there is a positive list of financial instruments and institutions. Anything that is not explicitly allowed is forbidden.
To get a new instrument or new institution approved, there will have to be testing, scrutiny by regulators, supervisors, academic specialists and other interested parties, and pilot projects. It is possible that, once a new instrument or institution has been approved, it is only available ‘with a prescription'. For instance, only professional counterparties rather than the general public could be permitted."
Prohibit the issuance of home mortgages having monthly payments larger than 28 percent of any buyer's mean monthly income.
Allow the elected Fed chairperson to make Federal Reserve appointments and firings. Require the Federal Reserve to reveal information about all loans it makes. Provide for the impeachment of the chairperson by three-fourths congressional vote.
Let bankruptcy judges decide which parties should be paid and how much when distributing bankruptcy assets. Prohibit all federally insured financial entities from making
or selling any financial instruments other than loans and
their stock. Prohibit all financial entities receiving federal
loans, including any loans from the central bank, from
making or selling any financial instruments other than loans
and their stock. Prohibit anyone who earned more than
250,00 annually from corporations, at any point in her
lifetime, from being employed by the federal government. Cancel tax treaties with countries that do not provide tax query information. Prohibit US banks from doing business with entities in countries that aid tax evasion by US citizens