By Jay Heflin - 05/11/10 01:26 PM EDT
Roubni said monetary policy should be tightened, leverage must become less vulnerable, and regulations need to be strengthened to help lessen the risk of another meltdown.
"What I am proposing goes back to Glass-Steagall Act types of restrictions between commercial and investment banking, regulations that already existed until about 10 years ago. They worked well," he said.
Roubni said the financial reform debate taking place in Congress is a "good start." He also supports the idea of stopping firms from offering a broad array of financial services.
"The financial supermarket model obviously has not worked," he said. "An institution where you have, all in one place, commercial banking, investment baking, hedge funds, insurance and lots of other financial services becomes too complex to manage. No CEO can effectively monitor that."