Glass-Steagall: Repeal the repeal?

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Revived Glass-Steagall-type legislation might well benefit banks more than they like to believe.

The rallying cry for a return to Glass-Steagall is becoming deafening. Richard Fisher, president of the Federal Reserve Bank of Dallas, in an interview with Euromoney, says he is expecting discussions around "Glass-Steagall 2.0" to commence in earnest in October.

In an interview with the Financial Times in September, Citi’s former chief executive, John Reed, also backed a return to Glass-Steagall, arguing that the "culture clash" between trading and commercial banking leads to "behaviour that isn’t...