Bring Back the Glass-Steagall Act

[Donnachaidh]

http://smirkingchimp.com/thread/stephen-pizzo/39078/bring-back-the-glass-steagall-act

In the summer of 1991 I got a call from Rep. Ed Markey's office. Markey wanted me to come back to Washington to testify at a hearing, and oppose the repeal of the Depression era Glass-Steagall Act.

The act was passed in the wake of the Wall Street and banking collapse that led to the last Great Depression, barring commercial banks from speculating in the stock markets.

In order to get people to put their money back in banks they no longer trusted, congress also established the Federal Deposit Insurance Corp. (FDIC) insuring the safety of their deposits.

And that stabilized banking until Ronald Reagan started dismantling the bank regulatory regime that led to the S&L crisis within five years. Then, in 1991 Wall Street and the big banks spent millions buying the political support need to launch what would prove a successful attack Glass-Steagall.

More at the link --

[FiveGoodMen]

1. Absolutely!

[Fire Walk With Me]

2. K&R!

[robdogbucky]

3. Donna, are you stalking me?

Now on p.8, I think 3 people responded.


Bring Back Glass-Steagall, RIGHT NOW!!!
Edited on Thu Oct-20-11 12:33 PM by robdogbucky

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x2154498


I got permission to post his whole article. Na na na na Neeeener!

Now if we can just get folks to wake up to this......







Wall St. To Be Bailed Out Again


Here we go again...

...So the Glass-Stegall Act was passed and the FDIC was created so that people could still put their money into a bank and be assured it wouldn’t disappear. It also made sure that banks with FDIC protection couldn’t use that protection to engage in high risk gambling.

Well, That block on gambling with peoples’ money went away when Congress overwhelmingly passed the Gramm–Leach–Bliley Act of 1999. Now the banks were free to turn Wall St. back into a casino but it would be even better this time! Now the government would have to save their bacon when their number came up. And so we got the Great Recession after the Wall St. collapse of 2008.

What does that have to do with Europe and a new round of bailouts? Simple. Because the GOP took great pains to ensure that the banks were not broken into discrete, smaller, less dangerous entities, the banks are still free to take insane risks with our money. And they certainly did. Oh, sure the new Dodd-Frank regulations are supposed to have fixed this but that didn’t stop Bank of America and JP Morgan from taking their about-to-explode European derivatives (the same derivatives the GOP would not let Obama regulate) from their vulnerable “separate” investment arm and dumping them in the nice, safe, FDIC insured commercial arm. Which means that when those derivatives collapse just like they did last time, the banks will just hold their hand out to the government under the guise of “making sure the average American doesn’t lose their savings.”

The Obama administration is questioning the legality of this move for the obvious reason that it violates the spirit of the new regulations if not the actual word (which is debatable)...

http://www.addictinginfo.org/2011/10/19/wall-st-to-be-b... /

[Donnachaidh]

5. no stalking -- different source, I think

You know, OWS is talking about this being a demand, as it should be. Of course, we also have people here who will unrec, and then whine about us picking on banks - or more specifically bank workers.

But this, along with a complete reversal of Citizen's United, and the banning of corporate money from our politics is CRITICAL to saving this country.

[jpak]

4. yup & K&R

:thumbsup:

[OHdem10]

6. Bring back Glass-Steagall, but DO NOT LET REPUBLICANS

OVERTON DODD_FRANK>

[snot]

7. K&R'd!

[Melissa G]

8. Needs to happen ASAP! n/t

[sarcasmo]

9. The faster the better.

[sendero]

10. +1000

The "reforms" that were included in Dodd-Frank are fine, but nothing short of Glass-Stegall will do JACK SQUAT to solve the problem of banks gambling with taxpayer money.

[RB TexLa]

11. UnRec a thousand times if I could

[madinmaryland]

13. Huh?

[RB TexLa]

15. I don't support the reinstatement of that law

[madinmaryland]

19. Why not?

[CreekDog]

23. how much do you make per year?

:shrug:

[OwnedByFerrets]

32. Must be part of the 1%

[sulphurdunn]

47. Think about it.

Are you sure you want to give god only knows how much public money again to the same stupid assholes who even after having their flunkies in Congress pass laws making it virtually impossible to break the law still found ways to break the law? :rofl:

[ThoughtCriminal]

17. Neutralizing Rec

:P

You're going to need a lot of sock puppets.

[theaocp]

35. U. R. A. Fraud.

The act keeps banx separate and as honest as we can hope. You're against that? I call 110% BULLSHIT.

[Malikshah]

41. No discussion. Just negative statement. This is an immature and irrational

way to discuss things. No explanation is given for one's obvious negative view for bringing back the law.

Unhelpful post.

Immature post.

Irrational post.


What damage will be brought to the US financial system if the law was brought back? No answer thus far, just petulant feces flinging.

Please grow up.

[madinmaryland]

12. Recommended.

[louslobbs]

14. K&R n/t

Lou

[MrSlayer]

16. I think it needed a little strengthening to keep up with the times.

So bring it back in a better, stronger form.

[woo me with science]

18. K&R

I have been told this is a right-wing talking point. :eyes:

[Dragonfli]

25. Anytime you post something contrary to a right wing policy embraced by the DLC, they call it that.

A bit ironic really, have an opinion that is not right wing enough and one is accused of right wing talking points.
I have to conclude you are the victim of either a troll or a third way (R)epublican in (D)rag.

[PuraVidaDreamin]

29. LOL

Must make that a sign where I do my thing here in P-town!
:pals: :fistbump: :yourock:

[Jakes Progress]

33. I once got called a right wing troll

for backing universal health coverage.

You get the idea that many here don't know or care about the difference between liberal and conservative, that they just got involved for the rock star movement.

[TheKentuckian]

42. That is amazing isn't it?

When asked what right winger is or even ever has taken the position the tumbleweeds roll through.

When it is documented that they have embraced the right wing position and policy out comes the spin, excuses, and maybe statements that the right was just kidding when they last made similar proposals.

[Dragonfli]

48. The funniest of late is that Obama WANTED Iraq to kick us out when

in fact he was trying to get them to agree to the right wing position that we should not only stay longer than Bush promised, but that we should not be accountable to any laws while doing so.

The are using Bolton's talking point of all things, the simply drop the final bit about it being a failure and claim instead that it is a victory of losing the debate with the Iraqi government.

I mean parroting John Bolton is just funny

[juajen]

20. K&R

[donheld]

21. The sooner the better.

[rhett o rick]

22. R&K

[PhoenixAbove]

24. K&R The sooner the better. n/t

[w0nderer]

26. k&r for reading later n/t

[Firebrand Gary]

27. K&R

[Enthusiast]

28. kr Restore Glass-Steagal! nt

[tavalon]

30. Can't disagree with that

[azul]

31. Duh.

And as punishment, the banks bigger than 1 or 2 $billions on deposit should be broken up -so that we don't get this too-big-to-fail extortion business shaft again.

[lucca18]

34. We have to bring back Glass-Steagall.

We need regulation.
Glass-Steagall prohibited commercial banks from engaging in investment banking (speculation).

[brewens]

36. They convinced Clinton they wouldn't crash the banks because

the banks were their livelihood. They forgot one thing. It doesn't work that way if the banksters don't lose anything for crashing the banks. If those bastards would have known they'd be ruined for screwing up the way they did, it would never have happened. Instead they made a fortune, got to keep it and if they aren't stopped, will do it again.

[jwirr]

37. On the WH petition site there is a petition to do just that. Needs sigs.

[WillyT]

38. HUGE K & R !!!

:kick:

[Demoiselle]

39. Reccity rec rec. (nt)

[pam4water]

40. Glass-Steagall Act FTW! K&R

[mother earth]

43. K & R, and let's get campaign finance reform done too.

[Lasher]

44. Also repeal the Commodity Futures Modernization Act of 2000

which deregulated derivative trading such as credit default swaps.

Obama should have pushed for these things as his first priority, as well as breaking up the big banks, immediately after initial stabilization efforts to ward off another Great Depression. Such measures probably would have passed then, if he had struck while the iron was hot.

But since no substantial banking sector changes have been made, we will periodically have to face yet another S&L Crisis or Subprime Clusterfuck, particularly since the moral hazard has been assured now by precedent.

[louis-t]

45. This is one of 3 demands I wish OWS would put out.

Also bring back fairness doctrine and overturn Citizens United.

[defendandprotect]

46. At the least -- but let's remember ... capitalism is an evil -- we've seen that all around the world

since the days of the "discoverers" -- and as the US destroyed nations and

people over centuries -- and even post-WWII --

Maybe we couldn't understand then just why so many wanted called for the "Yankee go home!"

and "Capitalist pigs to die" -- but I think it's become quite clear to Americans now!!

It's very late in the game -- but knowledge is power!




PS: It wasn't a "S&L crisis" it was S&L Theft and Embezzlement -- !!

This is planned economic harm and the latest "meltdown" we've been thru was a financial coup -- !!



Also remember than almost 100 banks have failed still this year and they were all under

the "supervision" of the Federal Reserve Bank -- yet found to be "critically undercapitalized" -- !!