The Glass-Steagal Act needs to be re-enacted and then some

[KissMy]

I prefer the government not bail-out or back things with our tax dollars. BUT - If the government is going to back it with our tax dollars then it needs to be regulated.

Government put the banks up to this absurd GSE driven banking model & then put it on steroids. You were warned about this 13 years ago. Then Clinton removed the bank regulations (Shadow Banking System) greasing the skids so everyone could own a home. Government gave banks & GSEs an implicit government guarantee that they will be made whole on bad loans. This allowed Shadow Banks to pay ratings agency's to stamp AAA on this shit because it was now backed by our AAA government. Bush drank Clinton's Kool-Aid. Why else would our government have bailed out AIG who insured this AAA shit & the shadow banks who sold it?

If you look back after the Great Depression when FDR created the FDIC that guaranteed all bank deposits up to $100K. It was the belief of most that everyone would deposit all of their money into the riskiest banks who paid out the highest interest on those deposits triggering an enormous FDIC payout. The governments FDIC guarantee most certainly would have caused this had it not been for their thorough regulation of banks to prevent such an event from playing out.

So what does our brilliant government do? They give even more guarantees & remove the very regulation that prevent banks from abusing the shit out of those guarantees for huge profits that they generously shared with our elected officials who enabled this crap.

 

[Full-Auto]

Yes do bring back the Glass-Steagal Act pronto!

And :
Look at the people's Budget:
Fighting for a People's Budget | The Nation

What a worthless article.

So obama did the right thing stealing from medicare, reducing income for ss.

The stupidity of the left has no boundaries.

 

[Sallow]

The banking industry will not like it, but it will cut down of predatory lending and the abuse of CDOs. Also the credit rating agencies need to be regulated.

 

[Sallow]

Shut the fuck and get out of this thread you partisan shitstain, you never know what the fuck you're talking about because you're so partisan-tarded.

LOL, like you know what the hell you're talking about...Predatory lending..good grief...

Yes, predatory ledning exists dumbfuck

Predatory lending - Wikipedia, the free encyclopedia

HUD Predatory Lending

Predatory Lending and Its Common Practices

Housing Bubble Hall of Shame®: Daniel Sadek

 

[Flaylo]

I prefer the government not bail-out or back things with our tax dollars. BUT - If the government is going to back it with our tax dollars then it needs to be regulated.

Government put the banks up to this absurd GSE driven banking model & then put it on steroids. You were warned about this 13 years ago. Then Clinton removed the bank regulations (Shadow Banking System) greasing the skids so everyone could own a home. Government gave banks & GSEs an implicit government guarantee that they will be made whole on bad loans. This allowed Shadow Banks to pay ratings agency's to stamp AAA on this shit because it was now backed by our AAA government. Bush drank Clinton's Kool-Aid. Why else would our government have bailed out AIG who insured this AAA shit & the shadow banks who sold it?

If you look back after the Great Depression when FDR created the FDIC that guaranteed all bank deposits up to $100K. It was the belief of most that everyone would deposit all of their money into the riskiest banks who paid out the highest interest on those deposits triggering an enormous FDIC payout. The governments FDIC guarantee most certainly would have caused this had it not been for their thorough regulation of banks to prevent such an event from playing out.

So what does our brilliant government do? They give even more guarantees & remove the very regulation that prevent banks from abusing the shit out of those guarantees for huge profits that they generously shared with our elected officials who enabled this crap.

True, Clinton and other Dems played their part in repealing Glass-Steagal and deregulation but this was by no means a Democrat concoted scheme, deregulation started with Reagan and Repugs voted overwhelmingly for the repeal of Glass Steagal too, don't smear the partisan shit with blatant dishonestly.

 

[Flaylo]

The eividence is all here

http://www.redlands.edu/docs/URSB/4_GLASS_STEAGALL_-_formatted__edited.pdf

 

[editec]

I agree.

But why not just join a credit union and take away the bastards money?

That might protect your money but it honestly won't solve the problem of the shadow banking system that's developed.

FYI the total activity of the shadow banking system exceeds (dwarfs really) the activity of the normal banking system.

see: http://www.newyorkfed.org/research/staff_reports/sr458.pdf

for an in depth explaination for what the "shadow" banking system really is.

 

[Flaylo]

And for the Repugs talking bullshit about there being too much regulation and how the government is evil the fleecing of America by the greedy at tax payer expense and through the use of pay offs to politicians is not some "liberal" lie or conspiracy theory, it actually has precedent, anyone remember Charles Keating?

Charles H. Keating Jr. News - The New York Times


These are the retards that Repugs want to protect and encourage via deregulation because the private banking industry is always less evil than big bad ol government.

 

[Flaylo]

Charles H. Keating Jr. News - The New York Times

In the aftermath of the savings and loan scandal of the 1980's, Charles H. Keating Jr. became for many a symbol of everything that had gone wrong in a business whose collapse cost American taxpayers over $120 billion.

The failure of a bank he controlled, Lincoln Savings and Loan, cost taxpayers $3.4 billion, the most of any thrift. Mr. Keating spent five years in prison after being convicted of federal racketeering charges. Released after the verdict was thrown out, he later pleaded guilty to four counts of fraud. And he went further than other bankers in his attempt to use his political influence to fend off regulators, enlisting a group of senators who had received campaign donations from him -- a group later known as the Keating Five.


Mr. Keating stoutly maintained his innocence, saying that regulators had caused the failure of his bank. Prosecutors painted him in a starker light, and focused on the sale of $250 million worth of bonds, which later defaulted, to his own depositors, many of whom thought they were guaranteed by the government. One sales document introduced in his civil trial exhorted salesmen with these words: "And always remember the weak, meek and ignorant are always good targets."


Judge Stanley Sporkin, who ruled in one civil suit, wrote: "Bluntly speaking, their actions amounted to a looting of Lincoln. This was not done crudely. Indeed, it was done with a great deal of sophistication."

For decades, savings and loan associations, also known as S&L's or thrifts, had been staples of the American economic landscape -- solid if unexciting institutions whose major business was making mortgage loans within their community. But decisions to relax their regulatory structure led to an explosion of growth among thrifts in the 1980's. With caps on the interest they could offer removed, some thrifts were able to attract huge influxes of new funds just as the economy was recovering from recession.

The new breed of aggressive S&L's moved into new lines of business, and Mr. Keating moved more aggressively than most into riskier investments, including junk bonds and real estate development. Pumped up in part by the S&L's investment, real estate boomed in the mid-80's -- and then fall back to earth. Hundreds of thrifts closed or were in danger of closing, leading Congress in 1989 to create the Resolution Trust Corporation.

Ok Repugs, keep arguing for less regulations, lmao.

 

[Full-Auto]

Charles H. Keating Jr. News - The New York Times

In the aftermath of the savings and loan scandal of the 1980's, Charles H. Keating Jr. became for many a symbol of everything that had gone wrong in a business whose collapse cost American taxpayers over $120 billion.

The failure of a bank he controlled, Lincoln Savings and Loan, cost taxpayers $3.4 billion, the most of any thrift. Mr. Keating spent five years in prison after being convicted of federal racketeering charges. Released after the verdict was thrown out, he later pleaded guilty to four counts of fraud. And he went further than other bankers in his attempt to use his political influence to fend off regulators, enlisting a group of senators who had received campaign donations from him -- a group later known as the Keating Five.


Mr. Keating stoutly maintained his innocence, saying that regulators had caused the failure of his bank. Prosecutors painted him in a starker light, and focused on the sale of $250 million worth of bonds, which later defaulted, to his own depositors, many of whom thought they were guaranteed by the government. One sales document introduced in his civil trial exhorted salesmen with these words: "And always remember the weak, meek and ignorant are always good targets."


Judge Stanley Sporkin, who ruled in one civil suit, wrote: "Bluntly speaking, their actions amounted to a looting of Lincoln. This was not done crudely. Indeed, it was done with a great deal of sophistication."

For decades, savings and loan associations, also known as S&L's or thrifts, had been staples of the American economic landscape -- solid if unexciting institutions whose major business was making mortgage loans within their community. But decisions to relax their regulatory structure led to an explosion of growth among thrifts in the 1980's. With caps on the interest they could offer removed, some thrifts were able to attract huge influxes of new funds just as the economy was recovering from recession.

The new breed of aggressive S&L's moved into new lines of business, and Mr. Keating moved more aggressively than most into riskier investments, including junk bonds and real estate development. Pumped up in part by the S&L's investment, real estate boomed in the mid-80's -- and then fall back to earth. Hundreds of thrifts closed or were in danger of closing, leading Congress in 1989 to create the Resolution Trust Corporation.

Ok Repugs, keep arguing for less regulations, lmao.

Yes democrats were just as corrupt then as they are now.

Is this were you guys went mainstream at accusing the opposition of your own actions?

 

[Flaylo]

Charles H. Keating Jr. News - The New York Times

In the aftermath of the savings and loan scandal of the 1980's, Charles H. Keating Jr. became for many a symbol of everything that had gone wrong in a business whose collapse cost American taxpayers over $120 billion.

The failure of a bank he controlled, Lincoln Savings and Loan, cost taxpayers $3.4 billion, the most of any thrift. Mr. Keating spent five years in prison after being convicted of federal racketeering charges. Released after the verdict was thrown out, he later pleaded guilty to four counts of fraud. And he went further than other bankers in his attempt to use his political influence to fend off regulators, enlisting a group of senators who had received campaign donations from him -- a group later known as the Keating Five.


Mr. Keating stoutly maintained his innocence, saying that regulators had caused the failure of his bank. Prosecutors painted him in a starker light, and focused on the sale of $250 million worth of bonds, which later defaulted, to his own depositors, many of whom thought they were guaranteed by the government. One sales document introduced in his civil trial exhorted salesmen with these words: "And always remember the weak, meek and ignorant are always good targets."


Judge Stanley Sporkin, who ruled in one civil suit, wrote: "Bluntly speaking, their actions amounted to a looting of Lincoln. This was not done crudely. Indeed, it was done with a great deal of sophistication."

For decades, savings and loan associations, also known as S&L's or thrifts, had been staples of the American economic landscape -- solid if unexciting institutions whose major business was making mortgage loans within their community. But decisions to relax their regulatory structure led to an explosion of growth among thrifts in the 1980's. With caps on the interest they could offer removed, some thrifts were able to attract huge influxes of new funds just as the economy was recovering from recession.

The new breed of aggressive S&L's moved into new lines of business, and Mr. Keating moved more aggressively than most into riskier investments, including junk bonds and real estate development. Pumped up in part by the S&L's investment, real estate boomed in the mid-80's -- and then fall back to earth. Hundreds of thrifts closed or were in danger of closing, leading Congress in 1989 to create the Resolution Trust Corporation.

Ok Repugs, keep arguing for less regulations, lmao.

Yes democrats were just as corrupt then as they are now.

Is this were you guys went mainstream at accusing the opposition of your own actions?

All but one Dem keep his seat, the others left office, the only still serving is a Repug.

 

[The Rabbi]

Do you even have a fucking clue what you're talking about you Ashkenazi shithead? The repeal of the Glass-Steagal Act and the refusal to regulate derivatives played major roles in the financial collapse in the housing market. The credit rating agencies fucked up too, they were paid off, how the fuck can a bank have a triple AAA rating just right before they collapse?

GS was repealed in 98. You really think that played a role 10 years later? Boy are you stupid.

Yes it did play a role fucktard, the housing bubble was a slow developing disaster.


10 Years Later, Looking at Repeal of Glass-Steagall - NYTimes.com

Ten years ago to the day, the government reversed one of the key elements of the Depression-era banking laws, knocking down the firewall between commercial banks, which take deposits and make loans, and investment banks, which underwrite securities. The repeal of the Glass-Steagall Act of 1933 was seen at the time as a way to help American banks grow larger and better compete on the world stage.

“Today, Congress voted to update the rules that have governed financial services since the Great Depression and replace them with a system for the 21st century,” then-Treasury Secretary Lawrence H. Summers said at the time. “This historic legislation will better enable American companies to compete in the new economy.”


But 10 years later, the end of Glass-Steagall has been blamed by some for many of the problems that led to last fall’s financial crisis. While the majority of problems that occurred centered mostly on the pure-play investment banks like Lehman Brothers, the huge banks born out of the revocation of Glass-Steagall, especially Citigroup, and the insurance companies that were allowed to deal in securities, like the American International Group, would not have run into trouble had the law still been in place.

“Commercial banks played a crucial role as buyers and sellers of mortgage-backed securities, credit-default swaps and other explosive financial derivatives,” Demos, a nonpartisan public policy and research organization, wrote in a report discussing the problems it said were caused by the repeal of Glass-Steagall.

“Without the watering down and ultimate repeal of Glass-Steagall, the banks would have been barred from most of these activities,” Demos said. “The market and appetite for derivatives would then have been far smaller, and Washington might not have felt a need to rescue the institutional victims.”

But 10 years ago, the revocation of Glass-Steagall drew few critics. In the House, 155 Democrats and 207 Republicans voted for the measure, while 51 Democrats, 5 Republicans and 1 independent opposed it. Fifteen members did not vote.

One of the leading voices of dissent was Senator Byron L. Dorgan, Democrat of North Dakota. He warned that reversing Glass-Steagall and implementing the Republican-backed Gramm-Leach-Bliley Act was a mistake whose repercussions would be felt in the future.

“I think we will look back in 10 years’ time and say we should not have done this, but we did because we forgot the lessons of the past, and that that which is true in the 1930s is true in 2010,” Mr. Dorgan said 10 years ago. “We have now decided in the name of modernization to forget the lessons of the past, of safety and of soundness.”

Oh yeah. NYT. There's a credible source for you.
You dont know shit. That's why you are Fail-O.

 

[Dont Taz Me Bro]

The repeal of the Glass-Steagal Act and the refusal to regulate derivatives played major roles in the financial collapse in the housing market.

There wouldn't have been a collapse if the government didn't threaten banks into lending to unqualified borrowers in the first place, thus setting the stage for sub-prime lending.

 

[Sallow]

The repeal of the Glass-Steagal Act and the refusal to regulate derivatives played major roles in the financial collapse in the housing market.

There wouldn't have been a collapse if the government didn't threaten banks into lending to unqualified borrowers in the first place, thus setting the stage for sub-prime lending.

Which never happened.

But heck..blaming the brown folks for the collapse..is mo' bettah then blaming fine upstanding citizens like John Thane and Dick Fuld.

 

[The Rabbi]

The repeal of the Glass-Steagal Act and the refusal to regulate derivatives played major roles in the financial collapse in the housing market.

There wouldn't have been a collapse if the government didn't threaten banks into lending to unqualified borrowers in the first place, thus setting the stage for sub-prime lending.

Which never happened.

But heck..blaming the brown folks for the collapse..is mo' bettah then blaming fine upstanding citizens like John Thane and Dick Fuld.

What never happened?
Sub prime lending never happened?
The CRA never happened?
The meltdown in subprime backed bonds never happened?
The whole recession never happened?

Hard to tell what fantasy you're spinning.

 

[Sallow]

There wouldn't have been a collapse if the government didn't threaten banks into lending to unqualified borrowers in the first place, thus setting the stage for sub-prime lending.

Which never happened.

But heck..blaming the brown folks for the collapse..is mo' bettah then blaming fine upstanding citizens like John Thane and Dick Fuld.

What never happened?
Sub prime lending never happened?
The CRA never happened?
The meltdown in subprime backed bonds never happened?
The whole recession never happened?

Hard to tell what fantasy you're spinning.

Fantasy is your middle name.

CRA had nothing to do with subprimes. But go ahead..keep it up. The interwebs are good for repeating lies ovah and ovah.

 

[Full-Auto]

Charles H. Keating Jr. News - The New York Times






Ok Repugs, keep arguing for less regulations, lmao.

Yes democrats were just as corrupt then as they are now.

Is this were you guys went mainstream at accusing the opposition of your own actions?

All but one Dem keep his seat, the others left office, the only still serving is a Repug.

Who was not implicated at all. But not for democrats trying to make the sitcom bipartisan.

 

[Flaylo]

The repeal of the Glass-Steagal Act and the refusal to regulate derivatives played major roles in the financial collapse in the housing market.

There wouldn't have been a collapse if the government didn't threaten banks into lending to unqualified borrowers in the first place, thus setting the stage for sub-prime lending.

This is total bullshit, the government didn't threaten any fucking body, keep throwing out partisan bullshit. In the old days before deregulation if a buyer wanted to buy a house he went to the bank and applied for a loan and if the buyer didn't qualify they didn't get a loan because the banks wouldn't take any risks on losing their money. With deregulation all the loans by buyers, even the subprime ones had a CDS taken out them which ensured that if the borrrower defaulted the banks would get their money regardless, so quit you lying bullshit about the government threatening banks into giving people loans, the banks wanted it that way you fucktard because they were getting rich off it.

 

[Flaylo]

The repeal of the Glass-Steagal Act and the refusal to regulate derivatives played major roles in the financial collapse in the housing market.

There wouldn't have been a collapse if the government didn't threaten banks into lending to unqualified borrowers in the first place, thus setting the stage for sub-prime lending.

Which never happened.

But heck..blaming the brown folks for the collapse..is mo' bettah then blaming fine upstanding citizens like John Thane and Dick Fuld.

That guy is a dickhead, how can the government "threaten" banks into giving people loans, mostly subprime loans when the banks were taking credit default swaps, an unregulated derivative, out on all these loans making money when the borrower defaulted?

 

[Mr. Shaman]

The banking industry will not like it, but it will cut down of predatory lending and the abuse of CDOs. Also the credit rating agencies need to be regulated.

Do you have a clue what the fuck you're talking about?

Yeah.....canceling-OUT
Phil Gramm's HU$TLE!!!!!

[ame=http://www.youtube.com/watch?v=rKKvMJeBBSA]Q&A: Leslie & Andrew Cockburn - YouTube[/ame]

See: 5:00 thru 12:00​