Bring Back Glass Steagall

[Left Coast2020]

There has not much discussion as far as I'm concerned on this. It has been mentioned, but not as serious as it should be. I value Professor Reich. I've heard him, and others bring this up with Big Eddie, but no action. If we are to have economic reform, this Act needs to be in the mix. Not "Wishy-Washy" watered down legislation, but hardcore in-your-face.

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J.P. Morgan Chase & Co., the nation’s largest bank, whose chief executive, Jamie Dimon, has lead Wall Street’s war against regulation, announced Thursday it had lost $2 billion in trades over the past six weeks and could face an additional $1 billion of losses, due to excessively risky bets

http://readersupportednews.org/opinion2/279-82/11378-focus-resurrecting-glass-steagall

[Sherman A1]

1. Precisely

We need Professor Reich back in the administration.

He "get's it".

[banned from Kos]

2. No he doesn't. Glass-Steagal had nothing to do with derivatives

The Volcker Rule does.


And $2 billion is a light loss for Morgan. The Volcker Rule would (when implemented) not effect that amount.

[mbperrin]

7. Is the $15 billion loss in their stock value also just nothing?

Can't understand when all this is nothing when they were thrilled to get $25 billion from you and me in 2008 in order to buy more companies.

Shouldn't they have just thrown it in the trash?

[westerebus]

3. Those days are over with re Glass-Steagall.

The 1932 Banking Act worked well for 50 years. Times have changed and the current banking investment laws are inadequate and outdated. Frank-Dodd included. Volker Rule included.

While there are laws and regulations which can be used to punish those who committed fraud, there is no political will to use the existing measures.

The current regulations are being written by the same people who depend on the banking investment industry's money to support the political parties to which they belong.

The expectation that those in power will change course is not realistic given current history.

[FogerRox]

6. Glass Steagll II was later

[westerebus]

10. Sorry, off by a year. n/t

[Po_d Mainiac]

9. It was the 1933 Banking Act

that limited banks (covered under the FDIC umbrella) Re. securities and affiliations between same banks and securities/insurance firms.

From Wiki: The first Glass–Steagall Act was a law enacted by the United States Congress in 1932. It was the first time that currency (non-specie, paper currency etc.) was permitted to be allocated for the Federal Reserve System. It was passed in February 1932 in an effort to stop deflation and expanded the Federal Reserve's ability to offer rediscounts[clarification needed] on more types of assets such as government bonds as well as commercial paper.[1]

[Gregorian]

4. Rec'ing for more discussion.

I don't know if Glass is the way forward.

[Gregorian]

5. Also, Max Keiser is predicting this is the beginning of the Enron-like devaluation of JP Morgan.

This being the very beginning of the stock devaluation of JP Morgan.

[mbperrin]

8. That would a fitting end to a useless institution.

No one knows all the damage they've done.