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Tag Archives: Regulatory Capture

For a while there it seemed to make sense: Saving the financial system was a matter of restoring bank profits to their pre-crisis levels. So, in the summer of 2010, it seemed like good news when US bank profits began to rise, returning to their pre-crisis levels. Now, however, this policy assumption has begun to be viewed in a different and more critical light. Now, Wall Street’s profits are being linked to the rise in US income inequality, and the regulatory and fiscal capture of the US government by the top 1%, as the Occupy Wall Street movement has christened today’s power elite. Do bank profits need to be high? How did they get so high anyway? And what do high bank profits do to our overall economy?

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