A good start on solving this would be to reinstitute Glass-Steagall with the strong provisions (20 & 32), the famous loopholes of the late-70's/80's removed, no

A good start on solving this would be to reinstitute Glass-Steagall with the strong provisions (20 & 32), the famous loopholes of the late-70's/80's removed, no grandfather clauses, and aggressive maintenance to fight new loopholes. Course, what politician would support that? You need money to win elections. That big spike that starts in 80 was right after the 1977 decision to allow commercial paper from private banks, and the 1982 decision to allow subsidiaries that could deal in securities. Banks and their lobbyists fought this from nearly the day of inception (Glass himself fought it) right up until the repeal in 1999 when it was pretty much dead. Why? It stops them from doing exactly what they're doing right now. Unfortunately, now all we get is Dodd-Frank, which is all the bureaucracy with none of the bite.