2016 Postmortem
Related: About this forumHillary Clinton doesn’t support revival of Glass-Steagall Act
Hillary Clinton says she doesnt support reinstating a Depression-era banking law that separated commercial and investment banks because her forthcoming proposal for U.S. financial reform is more comprehensive.
What is it? The Glass-Steagall Act, passed in 1933, prohibited commercial banks from participating in the investment banking business and created the Federal Deposit Insurance Corporation (FDIC) to protect bank deposits from institutional failure. But major provisions of the law were repealed in 1999 under President Bill Clinton, a move some believe contributed to the 2008 global credit crisis because commercial banks now free to invest in things such as real estate were saddled with billions of dollars in losses tied to cratering U.S. home prices. Several lawmakers on both sides of the aisle have called for the reinstatement of the law to make banks too big to fail much smaller, minimize risk and prevent such a crisis from happening again.
Who supports it? Vermont Sen. Bernie Sanders and former Maryland Gov. Martin OMalley two of Clintons challengers for the Democratic presidential nomination as well as Massachusetts Sen. Elizabeth Warren, who along with Arizona Sen. John McCain, reintroduced legislation to revive Glass-Steagall this year.
Despite the progress weve made since 2008, the biggest banks continue to threaten our economy, Warren said in a statement introducing the legislation. The biggest banks are collectively much larger than they were before the crisis, and they continue to engage in dangerous practices that could once again crash our economy.
Read more: https://www.yahoo.com/politics/hillary-clinton-doesnt-support-revival-of-150542856.html
stillwaiting
(3,795 posts)Wilms
(26,795 posts)Evergreen Emerald
(13,069 posts)You could indicate that the reason she does not support Glass Steagall is because she says it does not go far enough and she would put in stronger restrictions.
But don't let a RW talking point stand in the way of attempting to elevate your candidate.
tularetom
(23,664 posts)God knows what her story will be next week.
Doctor_J
(36,392 posts)That's news to me
Haven't you heard, every critique of Clinton is from the right. Banking reform being at the top of the right wing agenda, of course.
jfern
(5,204 posts)Unlike Sanders, O' Malley, and Warren?
roguevalley
(40,656 posts)don't mind being f**ked over. It gives them an excuse to smoke.
Baitball Blogger
(46,697 posts)Who has to abide by it? Just banking?
jfern
(5,204 posts)Baitball Blogger
(46,697 posts)I just don't know why business people talk about it as if they have to consider it in their sales process.
Uncle Joe
(58,338 posts)Thanks for the thread, Galraedia.
BlueStateLib
(937 posts)Senator Warren has said that one of the reasons shes been pushing reinstating Glass-Steagall even if it wouldnt have prevented the financial crisis is that it is an easy issue for the public to understand and you can build public attention behind.
She added that she considers Glass-Steagall more of a symbol of what needs to happen to regulations than the specifics related to the act itself.
When Senator Warren was pressed about whether she thought the financial crisis or JPMorgans losses could have been avoided if Glass-Steagall were in place, she conceded: The answer is probably No to both.
http://www.democraticunderground.com/?com=view_post&forum=1014&pid=1174029