Forum Post: End Banker Welfare
Posted 12 years ago on Oct. 7, 2011, 7:33 p.m. EST by riethc
(1149)
This content is user submitted and not an official statement
There are two bills in Congressional committee waiting to be brought to the floor of Congress: Marcy Kaptur's HR 1489 and Maurice Hinchey's HR 2451. If either of these two bills are passed by Congress, it will restore the Glass-Steagall Act, a law which had kept financial institutions separate, by enforcing by law that banks either be commercial banking institutions (mortgages, savings, etc.) or financial investment institutions (derivatives, CDOs, etc.).
Originally, this law came into being in 1933 during the Great Depression. Over time, its provisions had been eroded by many new laws until it was, for the most part, completely overturned in 1999 with the Financial Services Modernization Act (aka. the Gramm-Leach-Bliley Act).
Congressmen, such as Byron Dorgan, spoke on the floor of Congress before the vote on the Gramm-Leach-Bliley Act and warned that this would lead to a disaster in the financial system. (1) Dorgan goes as far a forecasting the collapse of the financial markets and the ensuing bailouts.
Now, over ten years after the repeal of Glass-Steagall, we can see the repercussions of removing the firewall between investment and commercial banking. Restoring the Glass-Steagall Act now, will break up the "too big to fail" banks and force them to sink or swim based on their own fiscal integrity.
No more bailouts for the banks. Support HR 1489 and HR 2451. Demand Glass-Steagall now!
Reference: 1. http://www.youtube.com/watch?v=OvnO_SH-4WU&feature=results_video&playnext=1&list=PL325E5EF5DAB7D072
Yes, bring back Glass-Steagall. The abolition of Glass-Steagall benefitted a very narrow segment of society to the detriment of the rest of us and has greatly increased systemic risk. This should be a demand, it's a practical and realistic one at that!
There also should be a way to stop the revolving door between government/SEC/lobbying, for example, something like a non-compete clause between those organizations.
You are right, bring back the regulations, and the regulators, (which would require the proper funding). And, if they are successful in rooting out the crooks, and they do it often enough, the cost could be recouped by huge fines. Nail them all to the wall! http://sibob.org/wordpress/
And then what? There's gonna be a lot of wall space used up. We're probably going to have to take down a lot of pictures. Whew this is going to be a lot of work.
Then the Federal Reserve goes back under the Treasury, like Kucinich has been saying.
Okay, stick them in the cellar. http://sibob.org/wordpress/
Obamas' 2012 Finance Director is the son of BANK OF AMERICAS former CEO.... the guy who got us in this mess!!! Keeping it all in the Family