Bipartisan Senate Megabank Bill Would Split Banking from Insurance, Other Risks

July 11, 2013

  • July 12, 2013 at 1:51 pm
    Libby says:
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    This is an honest question, so go easy on the attack. Why would anyone NOT want to do this? Besides Wall Street, I mean.

  • July 12, 2013 at 5:02 pm
    BB says:
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    That is a great question Libby. I think it makes perfect sense to reinstate a 21st Century Glass-Steagall Act.

    Separating the high risk activities of Wall Street’s unregulated investment banking casinos from Main Street’s historically, low-risk, conservatively managed retail banking makes a lot of sense.

    As you pointed out Libby, the obvious opponents to this idea will be the Wall Street firms as they will lose access to the hard earned cash sitting in American’s savings accounts, certificates of deposits, money market funds and checking accounts which Wall Street has used like poker chips in their over leveraged, self “regulated” casinos.

    As we all saw with our own eyes, when Wall Street places bets, with other people’s money, and wins, Wall Street cashes out and puts the “winnings” in their own pockets. However, when Wall Street places bets, with other people’s money, and loses, the US Taxpayers are left with the tab.

    It is my hope that the legislators who will be crafting this bill, are able to convince their colleagues, on all sides of the political spectrum, that this is the right thing to do for the country.

    It is my fear, however, that the uber rich and politically powerful Wall Street firms, along with their K-Street lobbyists, will purchase, I mean convince, a hand full of members of congress, to block this legislation.

    You would think that the small government, take our country back, Tea Party advocates on the right along with the social justice oriented, Liberal/Progressive advocates on the left would agree that the Too Big To Fail Wall Street Banks should not be allowed to crash our economy, and I would argue the Global economy for a second time, and leave the US Taxpayers with the bill.

    I pray that Senators McCain, Warren, Cantwell and King are successful in this noble cause. Lord knows that they will be up against a well-financed opponent. A real life David vs Goliath.

  • July 14, 2013 at 12:29 am
    nomesaneman says:
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    I believe you’ve answered your own question.

  • July 15, 2013 at 8:34 am
    BK says:
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    Sounds like it’s “Back to the Future”.

  • July 15, 2013 at 9:30 am
    Nan says:
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    You’ve got to admit, Glass-Steagall worked for decades until the well connected (politically)and very greedy Wall Street barons were able to destroy the protections that were put in place to PROTECT average Americans. As long as politics and WallStreet continue to mingle we will have bad behavior. Greed has outpaced integrity when it comes to respect in America businesses today. Show me the money!

  • July 16, 2013 at 11:26 am
    LiveFree says:
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    I am usually an advocate of pure free-market systems and less regulation, but in the case of the current banking industry, which has nothing to do with a free-market, I agree more regulations such as the Glass-Steagall Act would actually help, at least to an extent.

    I don’t believe the banking industry has anything to do with a free market because as it currently stands it is not a legitimate industry as long as it is able to take advantage of fractional reserve banking, which is possible because of the Federal Reserve/Central Bank. Therefore, more controls (Glass-Steagall Act) in the framework of central banking can only slow down the pace of the erosion of real-wealth formation. This won’t prevent erosion however, just lessen the fraudulent advantages that the banks are allowed to profit from.

    If we never repealed the Act in the first place I still believe a economic crises would have happened but I believe it would have been much less severe.

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