Senators Proposing to Reinstate Glass-Steagall

[Damocles]

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aQfRyxBZs5uc

Dec. 16 (Bloomberg) -- U.S. Senators John McCain and Maria Cantwell proposed reinstating the Depression-era Glass-Steagall Act that split commercial and investment banking to rein in Wall Street firms in response to the financial crisis.

“Under our proposal, too-big-to-fail banks would be forced to return to the business of conventional banking, leaving the task of risk taking or management to others,” McCain, an Arizona Republican, said at a Washington news conference. A former bank regulator said splitting up companies is “crazy.”

McCain and Cantwell, a Washington Democrat, join other lawmakers in Congress proposing to reinstate the 1933 law, repealed a decade ago by the Gramm-Leach-Bliley Act that led to a rise in conglomerates including Citigroup Inc., JPMorgan Chase & Co. and Bank of America Corp. active in retail banking, insurance and proprietary trading. Legislation to reinstate the ban was introduced today in the House.

More at link...

 

[Billy the Great Khan]

About damn time.

 

[Airstrip One]

McCain's influence goes without saying, but Cantwell is actually quite intelligent (giving way to the endearing expressions we have for her and senior Senator Murray - The Smart One and the Dumb One), with a successful business career under her belt. Looks like this thing may have a chance.

 

[Cancel 2016.11]

I'd like to believe this would have a chance in hell of passing, but the banks own our politicians. They own them all, and they put on kabuki for us. They tell one of their employees, oh it's okay for you to introduce. Then they inform their employees which ones of them can vote yes, and which ones will be voting no. It makes for great theatre, but if our owners don't want this to pass, it won't.

And they don't want it to pass. So I wouldn't hold my breath. Just my opinion.

 

[PostmodernProphet]

half of what passes for investment "banking" should simply be outlawed......

 

[Bonestorm]

half of what passes for investment "banking" should simply be outlawed......

Exactly. And reinstating Glass-Steagal isn't going to do anything to change that. I'd much prefer to outlaw the practices rather than saying only certain institutions may engage in them.

 

[SmarterthanYou]

I'd like to believe this would have a chance in hell of passing, but the banks own our politicians. They own them all, and they put on kabuki for us. They tell one of their employees, oh it's okay for you to introduce. Then they inform their employees which ones of them can vote yes, and which ones will be voting no. It makes for great theatre, but if our owners don't want this to pass, it won't.

And they don't want it to pass. So I wouldn't hold my breath. Just my opinion.

why do you like being owned? do you prefer being someones property?

 

[Cancel 2016.2]

About damn time.

Amen.

 

[Cancel 2016.2]

Exactly. And reinstating Glass-Steagal isn't going to do anything to change that. I'd much prefer to outlaw the practices rather than saying only certain institutions may engage in them.

Yes, it will. If you reinstate Glass Steagall the Investment banks are not going to have the capital of the retail side to use for leveraging purposes. They also will be allowed to fail. Both of which will cause either a reduction in the risk or the firm going out of business. Either of which I am fine with.