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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region Forumsa new Glass-Steagall...the petition
http://my.elizabethwarren.com/page/s/21stcenturyglasssteagall?source=20130918emCongress passed the Glass Steagall Act in 1933 to separate risky investment banking from ordinary commercial banking. And for half a century, the banking system was stable and our middle class grew stronger.
But in the 1980s, the federal regulators started reinterpreting the laws to break down the divide between regular banking and Wall Street risk-taking, and in 1999, Congress repealed Glass Steagall altogether. Wall Street had spent 66 years and millions of dollars lobbying for repeal, and, eventually, the big banks won.
Our new 21st Century Glass Steagall Act once again separates traditional banks from riskier financial services. And since banking has become much more complicated since the first bill was written in 1933, weve updated the law to include new activities and leave no room for regulatory interpretations that water down the rules.
The bill will give a five year transition period for financial institutions to split their business practices into distinct entities shrinking their size, taking an important step toward ending Too Big to Fail once and for all, and minimizing the risk of future bailouts.
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a new Glass-Steagall...the petition (Original Post)
magical thyme
Sep 2013
OP
Why were none of the banks that blew up banks that had been previously regulated by Glass-Steagall?
Recursion
Sep 2013
#5
tk2kewl
(18,133 posts)1. k&r
hedda_foil
(16,372 posts)2. Done. Thanks for posting this.
BlueToTheBone
(3,747 posts)3. Done! and Rec
Thanks MT! I'll send this to my email list.
RC
(25,592 posts)4. Five years, huh?
How long did it take to get combined? Days, minutes, seconds?
Recursion
(56,582 posts)5. Why were none of the banks that blew up banks that had been previously regulated by Glass-Steagall?
And what about the fact that it was the repeal of Glass-Steagall that let Bank of America and Wells Fargo step in and stop the bleeding of the investment banks?
Glass-Steagall prevented investment banks from operating retail accounts, and retail banks from operating proprietary desks.
None of the investment banks even opened retail accounts after the repeal, and none of the retail banks who opened proprietary desks imploded.
What good would a return to Glass-Steagall do? I have to agree with Barney Frank that the repeal of Glass-Steagall wasn't the problem.
DURHAM D
(32,609 posts)8. Exactly.
sufrommich
(22,871 posts)6. Done. nt
dmosh42
(2,217 posts)7. I think it's a great bill, but will get small support from our corporate minded Dem congress and...
forget about the ass-kissing Repubs. They only serve the rich, period.
bluedeathray
(511 posts)9. On it. nt