Separate banks' investment arms from retail arms

Stock markets the world over plunged on Thursday. This latest slide is being attributed to the fears that economic growth will slow down and the ongoing concerns about the Eurozone. An end must be put to the power wielded by the financial markets, demands the liberal daily La Stampa: "The first step is to recognise that the political measures adopted to fight the crisis so far have failed. ... This is why governments must finally gather the courage to at least partially break away from the anonymous tyranny of the financial markets. This means imposing rules on the markets to reduce their destructive power without however nullifying their positive impact. Rules that limit the speculative potential without affecting the basic function of the financial markets. The UK took a first step in this direction when the government introduced a law separating the banks' speculative investment arms from their normal retail arms."

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