Let Bad Banks Pay for Financial Literacy

BURLINGTON, Vt. (MarketWatch)—If Ben Franklin were alive today, he might edit his famous quote to say: “In this world, there is nothing that is certain except death, taxes and bank scandals.”

In my previous column, I discussed the current bank industry LIBOR scandal and the extent of other recent transgressions by financial institutions.

In that column, I proposed that, as was done in the 1990s with fines of the tobacco industry, a percentage of all fines and penalties paid to federal regulators by financial service companies accused of breaking laws be given to a newly created National Public Education Foundation for Financial Capability.

Why do we need this foundation? Numerous surveys and studies show that the personal finance knowledge of most Americans is very poor. Many of our citizens are not learning these critical life skills at home, at school or college, or in the workplace...

To continue reading, view John's full article from December 5, 2012 on Marketwatch here.