For decades, America's Glass-Steagall Act ensured a clean division of commercial and investment banking. But its repeal helped pave the way for the global financial crisis. Today politicians should restore the dual banking system to help ensure that banks that are too big to fail do not exist in the future.
The banks are blackmailing us, Sigmar Gabriel, the head of Germany's center-left Social Democratic Party wrote in a position paper for his party. But with the fuss over Gabriel's partly justified and partly exaggerated claim, one hopes that the most important words spoken last week will not get lost in the noise.
Those words were from Sandy Weill, who for eight years was the decisive figure at Citibank, the major American bank. This is the same Sandy Weill who forged a financial empire and successfully fought against just about every regulation that has been thrown at the banking sector. His message today? Split up the massive banks.
Read more: It's Time To Break Up Massive Banks! - SPIEGEL ONLINE
Showing posts with label Glass-Steagall Act. Show all posts
Showing posts with label Glass-Steagall Act. Show all posts
7/3/12
French President Hollande moves Europe forward while Euro-bank scandal escalates - by Brent Budowsky
Hollande is right. As America faces fateful jobs reports this week, the great debate in Europe and America will be joined in full. Hollande, to his great credit, believes in bringing a version of Glass-Steagall to France. Dare I suggest a de facto alliance between the French socialist and the American libertarian Ron Paul? Will Paul use his committee to investigate banks that may be fixing interest rates? Probably not. Will Paul join Hollande for their joint belief in Glass-Steagall reform of banks? Perhaps he will.
Will the Tea Party, the great populist impostors, join in? No way. They are agents of the banks. As populists, they are frauds.
If a bad jobs report arrives, the "hope America fails" Republicans rejoice. Hollande will continue his enlightened battle for change and reform. President Obama will have his second great chance to fight for the principles he championed in 2008.
Read more: French President Hollande moves Europe forward while Euro-bank scandal escalates - The Hill's Pundits Blog
Will the Tea Party, the great populist impostors, join in? No way. They are agents of the banks. As populists, they are frauds.
If a bad jobs report arrives, the "hope America fails" Republicans rejoice. Hollande will continue his enlightened battle for change and reform. President Obama will have his second great chance to fight for the principles he championed in 2008.
Read more: French President Hollande moves Europe forward while Euro-bank scandal escalates - The Hill's Pundits Blog
Subscribe to:
Posts (Atom)