Dingell may propose return of banking regulations

[DJ13]

WASHINGTON -- The chairman of the House Energy and Commerce Committee is considering introducing a bill this week to overturn a landmark 1999 law that deregulated the banking industry, his office said Monday.

Rep. John Dingell, D-Dearborn, may introduce a bill to repeal the Gramm-Leach-Bliley Act. The 1999 law repealed part of a landmark New Deal securities regulation law, the Glass-Steagall Act, and allowed mergers between commercial and investment banks creating today's financial-services giants.

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In 1999, Dingell warned on the House floor that the Gramm-Leach-Bliley Act could lead to a big bailout of banks, urging his colleagues to vote against it.

"I just want to remind my colleagues what happened the last time the committee on banking brought a bill on the floor which deregulated the savings and loans. It wound up imposing upon the taxpayers of this nation about a $500 billion liability," Dingell said. "Having said that, what we are creating now is a group of institutions which are too big too fail. Not only are they going to be big banks, but they are going to be big everything."

Dingell warned in that 1999 speech that one day the bill will come due.

http://www.detnews.com/apps/pbcs.dll/article?AID=/20080922/BIZ/809220409/-1/rss

[gademocrat7]

1. I hope he does

Gramm-Leach-Bliley needs to be repealed.