Why Republicans’ Plan to Rebuild a Glass-Steagall Wall Is Bad Idea

By Paula Dwyer, Bloomberg View | July 21, 2016

  • July 22, 2016 at 9:47 am
    Yogi Polar Berra says:
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    One of the reasons large financial institutions have consolidated and moved toward greater size is the highly restrictive and punitive federal regulations that increase compliance costs. Those unreasonably high compliance costs may be spread over a larger client base when banks, etc. are LARGE. So, the solution to financial institutions growing large, and potentially causing regulatory concerns, is to reduce substantially reduce federal regulations that make US companies ( not just financial institutions ) much less competitive in global markets. That would enable SMALLER financial institutions to enter the market and increase competition, lowering costs and improving customer service.

    Many Liberal politicians are too ignorant to understand the simple economics involved, and continue to push for greater government control, which is one of the steps toward Socialism and eventually, Communism. Other liberals are doing so despite knowing the more efficient and desirable results of increased competition resulting from fewer regulations and lower taxes.

    Only ignorant or arrogant liberals will push back against reinstatement of Glass-Steagall.

    • July 22, 2016 at 9:48 am
      Yogi Polar Berra says:
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      Oops! eliminate the first ‘reduce’ in 3rd sentence above. mea culpa.

    • July 22, 2016 at 1:48 pm
      Jack Kanauph says:
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      Amen brother

    • July 22, 2016 at 2:34 pm
      Agent says:
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      Yogi, how about that Dodd-Frank bill which was the result of the financial meltdown of Fanny/Freddie after wonderful Bawney said they were both sound and needed no further scrutiny? Of course, he did have a boyfriend working for Freddie at the time. The boyfriend said we are good and Bawney said ok, no problem.

  • July 22, 2016 at 1:48 pm
    Husker Girl says:
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    Hi,
    I agree with Yogi. It is a shame that the left wing articles can be so misleading. Why not research things at all angles and give us a true statement about these issues.

    Thanks Yogi for showing the other side so that we can review and make up our own minds. Bias in the media is definitely getting out of hand. It’s like they don’t want to do their jobs any more. They get one side of an issue that meets their agenda and run with it.

  • July 22, 2016 at 2:01 pm
    Yogi Polar Berra says:
    Hot debate. What do you think?
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    To the buttwipe liberals who have been BOTTING conservatives comments because they can’t debate like mature adults, I re-post my original post for you to bot-censor again….

    If you do, I’ll just copy the original post and re-post it. What will you do then to TRY to censor opinions of those with whom you disagree?

    *************************************************************************

    One of the reasons large financial institutions have consolidated and moved toward greater size is the highly restrictive and punitive federal regulations that increase compliance costs. Those unreasonably high compliance costs may be spread over a larger client base when banks, etc. are LARGE. So, the solution to financial institutions growing large, and potentially causing regulatory concerns, is to reduce substantially reduce federal regulations that make US companies ( not just financial institutions ) much less competitive in global markets. That would enable SMALLER financial institutions to enter the market and increase competition, lowering costs and improving customer service.

    Many Liberal politicians are too ignorant to understand the simple economics involved, and continue to push for greater government control, which is one of the steps toward Socialism and eventually, Communism. Other liberals are doing so despite knowing the more efficient and desirable results of increased competition resulting from fewer regulations and lower taxes.

    Only ignorant or arrogant liberals will push back against reinstatement of Glass-Steagall.

    ************************************************************************

    • July 22, 2016 at 2:53 pm
      It Is Known says:
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      Ah, so it was liberals that did this? I thought it was a bipartisan effort (introduced by and named after three Republicans) that 75% support from Democrats in the House with 98% Republican support (Senate numbers are similar, 84%/98%). Or were those Republicans a bunch of liberals that don’t understand simple economics? Stop pretending that one party or the other represents everything you love or hate, everything that is good or evil. Also, when you say “Only ignorant or arrogant liberals will push back against reinstatement of Glass-Steagall” and then claim that you wanted a debate, having pre-insulted anyone who speaks, that seems disingenuous. But what do I know? I simply pointed out facts, probably makes me a liberal. Or worse, an informed independent that uses C-Span’s reality and fact-checking rather than being conned by “news” sources. Tell me truthfully – a week ago did you remember Glass-Steagall? Unless you were a Bernie supporter, you probably hadn’t heard of it in over 15 years.

      • July 25, 2016 at 11:25 am
        Yogi Polar Berra says:
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        Any “Republican” signing on to that bill is a ‘RINO’ to me, and many other observant persons.

        I wanted a debate, and had posted my reply to the liberal slant presented in the article. Did you not read the liberal author’s article? If so, the two opinions constitute the beginning of a debate. You are welcome to join the debate as long as you follow the rules of civility and rules for Insurance Journal comments.

    • July 22, 2016 at 7:44 pm
      norm nunnally says:
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      That behavior seems to be prevalent with, and I hate to say it, a vast majority of millennials and lately the quasi republicans who have pushed out the standard bearers and conservatives.

      • July 26, 2016 at 9:17 am
        Yogi Polar Berra says:
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        Agreed. A very observant and insightful comment!

  • July 22, 2016 at 2:28 pm
    Batmansdad says:
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    The repeal of Glass Steagall was the roots cause of the 2008 crash. All of the products that threatened financial stability of Banks were not legal under Glass Steagall. The AIG/Goldman bail out was not have been needed. No too big to fail.

    Glass/Steagall was repealed just so Travelers and Citibank could merge and this is what it got us.

    • July 22, 2016 at 4:32 pm
      Agent says:
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      As you might recall, Travelers unmerged with Citibank several years ago and also got their logo umbrella back as well. Good thing they got away from Citi.

  • July 22, 2016 at 2:46 pm
    Local Agent says:
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    I am all for reinstating Glass-Steagall, if for no other reason but to keep the bank tie-in at bay. Yeah, I know, I know, under GLB there is not supposed to be the tie-in, but we all know that’s BS. I have had my customers routinely intimidated by the bank to make the insurance sale through their bank owned agency. I have even had one bank lie about our service, telling the customer that we didn’t provide the required Binder and receipt accurately, so they steered the customer – who was referred to us by a local realtor – to their own in-house people, because after 30 years, I don’t know what I’m doing with a simple homeowners transaction. As for the disruption reinstating Glass-Steagall might have on banks? Frankly, I don’t give a damn.

  • July 22, 2016 at 3:53 pm
    MICHAEL J. HURLEY says:
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    Paula Dwyer must be drinking the big bank is best Kool Aid. The
    Feds decided in the 1980’s downturn that small banks were bad. They only wanted to see large regionals and megabanks survive. There has been a consistent effort by regulators to stifle small
    bank development since, which to my pleasure has NOT WORKED. We have an upsurge in community banks over the last 10 years, and Yes,
    they serve most of America better than the big guys who just focus
    on bottom line, not what is good for the community businessman. I say definitely reinstate a form of Glass Steagall and prevent the
    big banks from doing the same stupid thing again- for the third
    time- putting bank assets in questionable investments. They have
    no business putting those assets in high risk alternative. Period.,

  • July 22, 2016 at 5:48 pm
    Oracle says:
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    Goldman Sachs and AIG.

  • July 23, 2016 at 7:56 am
    Lanny D says:
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    I must have missed something. I read a lot of words, but none of them seemed to make an even modestly compelling argument as to why reinstating Glass-Steagall would be such a bad thing, or even why having investment banks being combined with commercial banks is such a wonderful thing.

  • July 25, 2016 at 10:34 am
    OmniSure says:
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    Get the BIG BANKS out of the P&C insurance business too. I have seen a number of examples where the BIG BANKS use their “coercive lending leverage” to induce and entice a borrower to bring their Business Insurance or Home/Auto Insurance to the BIG BANK’s “Insurance Agency” to “aid” in more preferred terms on the loan that the small business or homeowner is trying to qualify for. That’s another reason for Glass-Steagall separation. It’s only a matter of time before this financial coercion is brought to bear by the trail attorney’s on a class action basis for RICO and RESPA violations. “Ancillary Sources of Income” are all that these other services mean to the BIG BANKS. That is not illegal, but… the coercive means in which the consumer is pressured to purchase from the BIG BANK’S “alternate markets” may very well be illegal. Time will tell, of that I am… OmniSure.



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