The banks will pay

Everyone knows US infrastructure – given a D+ rating by the American Society of Civil Engineers – is in a state of crisis. So who better to pay for it than those held responsible by many for causing the Crisis?

Former President Bill Clinton, speaking at a meeting of the Securities Industry & Financial Markets Association in New York, suggested that fines levied against banks in connection with the global and financial crisis should be used to fund infrastructure improvements.

“Where’s that money going?” he asked, according to a Bloomberg report. “It should be put into an infrastructure bank to build a new American economy.”

Clinton went on to say that, pre-Crisis, trading had been favoured at the expense of investment and that too much capital had gone into housing – creating a bubble.

Given that JP Morgan alone reached a $13 billion settlement with US regulators for misleading investors during the housing crisis, let’s hope Clinton’s idea doesn’t create a new bubble in infrastructure.

After all, under his plan, an awful lot of money could be heading its way.