Core Proposal: Let’s revive the radical idea of narrow banking and tightly limit what banks (and any other entities that raise short term deposits from the pub

Core Proposal: Let’s 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. The standard would simply be whether the loan can be monitored by bankers and examiners who do not have PhDs in finance. Anyone else: investment banks, hedge funds, trusts and the like can innovate and speculate to the utmost, free of any additional oversight. But, they would not be allowed to trade with or secure credit from regulated banks, except through prudent loans whose collateral and terms can be monitored by run of-the-mill bankers and examiners.