With
Glass-Steagall Revival, A Call to Bust Up the Megabanks
Published
on Friday, July 12, 2013 by Common
Dreams
Five
years after financial collapse, says Sen. Warren, and biggest banks are now
bigger than ever
- Jon Queally, staff
writerUS Sen. Elizabeth Warren (D-MA) and others on Thursday introduced a new bill that revives the call to bust up the nation’s largest banks and financial institutions by once again demanding a separation between the traditional banking practices of savings and loans from the far riskier behavior taken on by large investment, complex trading, and hedge fund operations.
Despite repeated efforts to “break up the big banks” by public interest groups and some legislators, all of those efforts—despite the destructive recession, foreclosure crisis, and unemployment epidemic—have been thwarted by the politically powerful financial industry represented by Wall Street lobbyists and others.
“The four biggest banks are now 30% larger than they were just five years ago,” said Sen. Warren, “and they have continued to engage in dangerous, high-risk practices that could once again put our economy at risk. The 21st Century Glass-Steagall Act will reestablish a wall between commercial and investment banking, make our financial system more stable and secure, and protect American families.”
Reporting to the development, Huffington Post’s Zach Carter comments:
The legislation is unlikely to be signed into law, but underscores a deepening rift between the House and Senate over financial accountability. While bipartisan coalitions in the House have been moving legislation to deregulate swaps — the complex financial products at the heart of the 2008 banking collapse — a host of Senate bills cracking down on Wall Street risk have garnered Democratic and GOP support.
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2 comments:
An excellent article about Black Monday
http://www.fourwinds10.net/siterun_data/government/banking_and_taxation_irs_and_insurance/social_security/news.php?q=1221963121
This is to Jean and everyone else to enact a 21st Century Glass - Steagall Act. In case you do not know who the person was in 1999 who repealed the Glass - Steagall Act. It was none other then the Secretary of the USA Treasury Lawrence Summers during the Clinton Administration in November 1999 who repealed the Glass - Steagall act first enacted by President Delano Roosevelt shortly after he was elected in 1933 to keep investment banks separate from commercial banks.
The person who put pressure on Lawrence Summers was a descending member, Peter J Wallison of, " The Financial Crisis Inquiry Commission. "
The consequences for repealing the Glass - Steagall Act opened the flood gate permitting investment banks to interfere with commercial banking practices.
Since the President George W. Bush Administration only 69 House of Representatives have signed H.R. 129 by Marcy Kaptur to re-enact the Glass - Steagall Act. Matching this bill is Senate bill 985 by 5 US Senators. Sen. Harkin introduced on July 11, 2013 S.B. 985 followed by Sen Warren D., Sen. Cantwell
D., Sen. Mc Cain R. and Sen. Agnes King I
What is most important before both House and Senate bills are approved.
Former Secretary of the USA treasury Lawrence Summers is the first or second choice to replace Federal Reserve Chairman Bernanke.
For further reference: Read and study THE FINANCIAL CRISIS INQUIRY REPORT by Phil Angelides, chairman of this Commision of 8 members and former Vice Chairman Hon. Bill Thomas
Read especialy chapter 2 on page 27, Shadow Banking
Thank you for this opportunity !
Karl
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