Should Glass Steagal law be reinstated?

[CultureCitizen]

This law separated commercial and investment banks. IMHO the repeal of this important legislation was one of the main causes which lead into the 2008 crisis.

What are your thoughts on this topic?
Should this law be reinstated? What would be the downside ? Who is proffiting from the current legislation and who would loose if it was reinstated?

Glass Steagall Legislation - Wikipedia the free encyclopedia

The article on the 1933 Banking Act describes the legislative history of that Act, including the Glass–Steagall provisions separating commercial and investment banking. As described in that article, between 1930 and 1932 Senator Carter Glass (D-VA) introduced several versions of a bill (known in each version as the Glass bill) to regulate or prohibit the combination of commercial and investment banking and to establish other reforms (except deposit insurance) similar to the final provisions of the 1933 Banking Act.

 

[Dad2three]

This law separated commercial and investment banks. IMHO the repeal of this important legislation was one of the main causes which lead into the 2008 crisis.

What are your thoughts on this topic?
Should this law be reinstated? What would be the downside ? Who is proffiting from the current legislation and who would loose if it was reinstated?

Glass Steagall Legislation - Wikipedia the free encyclopedia

The article on the 1933 Banking Act describes the legislative history of that Act, including the Glass–Steagall provisions separating commercial and investment banking. As described in that article, between 1930 and 1932 Senator Carter Glass (D-VA) introduced several versions of a bill (known in each version as the Glass bill) to regulate or prohibit the combination of commercial and investment banking and to establish other reforms (except deposit insurance) similar to the final provisions of the 1933 Banking Act.

G/S had zero to do with Dubya's REGULATOR failure.

 

[CultureCitizen]

This law separated commercial and investment banks. IMHO the repeal of this important legislation was one of the main causes which lead into the 2008 crisis.

What are your thoughts on this topic?
Should this law be reinstated? What would be the downside ? Who is proffiting from the current legislation and who would loose if it was reinstated?

Glass Steagall Legislation - Wikipedia the free encyclopedia

The article on the 1933 Banking Act describes the legislative history of that Act, including the Glass–Steagall provisions separating commercial and investment banking. As described in that article, between 1930 and 1932 Senator Carter Glass (D-VA) introduced several versions of a bill (known in each version as the Glass bill) to regulate or prohibit the combination of commercial and investment banking and to establish other reforms (except deposit insurance) similar to the final provisions of the 1933 Banking Act.

G/S had zero to do with Dubya's REGULATOR failure.

Well , of course , because G/S had already been repeled years ago.

As early as 1997, Federal Reserve chairman Alan Greenspan fought to keep the derivatives market unregulated.[101] With the advice of the President's Working Group on Financial Markets,[102] the U.S. Congress and President Bill Clinton allowed the self-regulation of the over-the-counter derivatives market when they enacted the Commodity Futures Modernization Act of 2000. Derivatives such as credit default swaps (CDS) can be used to hedge or speculate against particular credit risks without necessarily owning the underlying debt instruments. The volume of CDS outstanding increased 100-fold from 1998 to 2008, with estimates of the debt covered by CDS contracts, as of November 2008, ranging from US$33 to $47 trillion. Total over-the-counter (OTC) derivative notional value rose to $683 trillion by June 2008.[103]Warren Buffett famously referred to derivatives as "financial weapons of mass destruction" in early 2003

Financial crisis of 2007 08 - Wikipedia the free encyclopedia

 

[Dad2three]

This law separated commercial and investment banks. IMHO the repeal of this important legislation was one of the main causes which lead into the 2008 crisis.

What are your thoughts on this topic?
Should this law be reinstated? What would be the downside ? Who is proffiting from the current legislation and who would loose if it was reinstated?

Glass Steagall Legislation - Wikipedia the free encyclopedia

The article on the 1933 Banking Act describes the legislative history of that Act, including the Glass–Steagall provisions separating commercial and investment banking. As described in that article, between 1930 and 1932 Senator Carter Glass (D-VA) introduced several versions of a bill (known in each version as the Glass bill) to regulate or prohibit the combination of commercial and investment banking and to establish other reforms (except deposit insurance) similar to the final provisions of the 1933 Banking Act.

G/S had zero to do with Dubya's REGULATOR failure.

Well , of course , because G/S had already been repeled years ago.

As early as 1997, Federal Reserve chairman Alan Greenspan fought to keep the derivatives market unregulated.[101] With the advice of the President's Working Group on Financial Markets,[102] the U.S. Congress and President Bill Clinton allowed the self-regulation of the over-the-counter derivatives market when they enacted the Commodity Futures Modernization Act of 2000. Derivatives such as credit default swaps (CDS) can be used to hedge or speculate against particular credit risks without necessarily owning the underlying debt instruments. The volume of CDS outstanding increased 100-fold from 1998 to 2008, with estimates of the debt covered by CDS contracts, as of November 2008, ranging from US$33 to $47 trillion. Total over-the-counter (OTC) derivative notional value rose to $683 trillion by June 2008.[103]Warren Buffett famously referred to derivatives as "financial weapons of mass destruction" in early 2003

Financial crisis of 2007 08 - Wikipedia the free encyclopedia

NOTHING to do with Dubya's REGULATOR failure. Weird we elect guys like Dubya and Reagan (S&L) who don't 'believe in' Gov't, then are shocked when they ignore regulator warnings and as the executive in charge of regulators, are shocked shit happens under them


If you tally the institutions that ran into severe problems in 2008-09, the list includes Bear Stearns, Lehman Brothers, Merrill Lynch, AIG, and Fannie Mae and Freddie Mac, none of which would have come under Glass-Steagall’s restrictions. Even President Obama has recently acknowledged that “there is not evidence that having Glass-Steagall in place would somehow change the dynamic.”


As for the FDIC-insured commercial banks that ran into trouble, the record is also clear: what got them into trouble were not activities restricted by Glass-Steagall. Their problems arose from investments in residential mortgages and residential mortgage-backed securities—investments they had always been free to engage in.

Why The Glass-Steagall Myth Persists - Forbes


Dubya's REGULATOR failure

FACTS on Dubya s great recession US Message Board - Political Discussion Forum

 

[EdwardBaiamonte]

. Weird we elect guys like Dubya and Reagan (S&L) who don't 'believe in' Gov't, then are shocked when they ignore regulator warnings and as the executive in charge of regulators, are shocked shit happens under them

too stupid by 1000%!!!! FDR, USSR, Red China, East Germany regulated like crazy and it didn't work but dumbto3 wants to keep trying when the USA is the least regulated and most successful.

 

[Billo_Really]

This law separated commercial and investment banks. IMHO the repeal of this important legislation was one of the main causes which lead into the 2008 crisis.

What are your thoughts on this topic?
Should this law be reinstated? What would be the downside ? Who is proffiting from the current legislation and who would loose if it was reinstated?

Glass Steagall Legislation - Wikipedia the free encyclopedia

The article on the 1933 Banking Act describes the legislative history of that Act, including the Glass–Steagall provisions separating commercial and investment banking. As described in that article, between 1930 and 1932 Senator Carter Glass (D-VA) introduced several versions of a bill (known in each version as the Glass bill) to regulate or prohibit the combination of commercial and investment banking and to establish other reforms (except deposit insurance) similar to the final provisions of the 1933 Banking Act.

Absolutely it should be re-instated and derivatives should be outlawed. The sum total of derivative liability for the big banks is about $600 trillion. They just passed a banking law that states if any bank goes belly up, the derivative creditors get first dibs on the money left in the bank. Now when a bank goes down, they seize your funds. You're what they call an "un-insured creditor". It's called a "bail in".

Glass-Steagall would stop all this bullshit.

We also need to start investing in "public banks".

 

[Billo_Really]

too stupid by 1000%!!!! FDR, USSR, Red China, East Germany regulated like crazy and it didn't work but dumbto3 wants to keep trying when the USA is the least regulated and most successful.

Successful for 1% of the population.

Fuck you, asshole!

 

[Dad2three]

. Weird we elect guys like Dubya and Reagan (S&L) who don't 'believe in' Gov't, then are shocked when they ignore regulator warnings and as the executive in charge of regulators, are shocked shit happens under them

too stupid by 1000%!!!! FDR, USSR, Red China, East Germany regulated like crazy and it didn't work but dumbto3 wants to keep trying when the USA is the least regulated and most successful.

Yeah dummy, how'd those 'less Gov't regulators turn out when Reagan (S&L) AND Dubya (Subprimes) ignored calls from the regulators that the Banksters were going to hose US (again)???


Talk about ignorant

 

[Dad2three]

This law separated commercial and investment banks. IMHO the repeal of this important legislation was one of the main causes which lead into the 2008 crisis.

What are your thoughts on this topic?
Should this law be reinstated? What would be the downside ? Who is proffiting from the current legislation and who would loose if it was reinstated?

Glass Steagall Legislation - Wikipedia the free encyclopedia

The article on the 1933 Banking Act describes the legislative history of that Act, including the Glass–Steagall provisions separating commercial and investment banking. As described in that article, between 1930 and 1932 Senator Carter Glass (D-VA) introduced several versions of a bill (known in each version as the Glass bill) to regulate or prohibit the combination of commercial and investment banking and to establish other reforms (except deposit insurance) similar to the final provisions of the 1933 Banking Act.

Absolutely it should be re-instated and derivatives should be outlawed. The sum total of derivative liability for the big banks is about $600 trillion. They just passed a banking law that states if any bank goes belly up, the derivative creditors get first dibs on the money left in the bank. Now when a bank goes down, they seize your funds. You're what they call an "un-insured creditor". It's called a "bail in".

Glass-Steagall would stop all this bullshit.

We also need to start investing in "public banks".

I agree with your sentiment on G/S, but this wasn't a regulation failure but a situation where the regulator on the beat (Dubya's exec branch) chose to ignore (and even fight state regulators) regulator warnings (like Reagan did with the S&L's). Weird we elect guys who don't 'believe ion ' Gov't and are shocked when they are in charge and shit falls apart.

FACTS on Dubya s great recession US Message Board - Political Discussion Forum


Regulators and policymakers enabled this process at virtually every turn. Part of the reason they failed to understand the housing bubble was willful ignorance: they bought into the argument that the market would equilibrate itself. In particular, financial actors and regulatory officials both believed that secondary and tertiary markets could effectively control risk through pricing.


http://www.tobinproject.org/sites/tobinproject.org/files/assets/Fligstein_Catalyst of Disaster_0.pdf


Yes, derivatives need MUCH more regulation

 

[Andylusion]

This law separated commercial and investment banks. IMHO the repeal of this important legislation was one of the main causes which lead into the 2008 crisis.

What are your thoughts on this topic?
Should this law be reinstated? What would be the downside ? Who is proffiting from the current legislation and who would loose if it was reinstated?

Glass Steagall Legislation - Wikipedia the free encyclopedia

The article on the 1933 Banking Act describes the legislative history of that Act, including the Glass–Steagall provisions separating commercial and investment banking. As described in that article, between 1930 and 1932 Senator Carter Glass (D-VA) introduced several versions of a bill (known in each version as the Glass bill) to regulate or prohibit the combination of commercial and investment banking and to establish other reforms (except deposit insurance) similar to the final provisions of the 1933 Banking Act.

Absolutely it should be re-instated and derivatives should be outlawed. The sum total of derivative liability for the big banks is about $600 trillion. They just passed a banking law that states if any bank goes belly up, the derivative creditors get first dibs on the money left in the bank. Now when a bank goes down, they seize your funds. You're what they call an "un-insured creditor". It's called a "bail in".

Glass-Steagall would stop all this bullshit.

We also need to start investing in "public banks".

What are you people smoking??

Glass Steagall would not stop any of that.

 

[Andylusion]

This law separated commercial and investment banks. IMHO the repeal of this important legislation was one of the main causes which lead into the 2008 crisis.

What are your thoughts on this topic?
Should this law be reinstated? What would be the downside ? Who is proffiting from the current legislation and who would loose if it was reinstated?

Glass Steagall Legislation - Wikipedia the free encyclopedia

The article on the 1933 Banking Act describes the legislative history of that Act, including the Glass–Steagall provisions separating commercial and investment banking. As described in that article, between 1930 and 1932 Senator Carter Glass (D-VA) introduced several versions of a bill (known in each version as the Glass bill) to regulate or prohibit the combination of commercial and investment banking and to establish other reforms (except deposit insurance) similar to the final provisions of the 1933 Banking Act.

If the repeal of separation of commercial and investment banks was the cause of the crash....... then why didn't the problem start in Europe, Canada, or Asia, where no such separation has ever existed, and still doesn't to this day?

You do realize that the vast majority of the banks that failed, were not hybrid banks, and would not have been affected either way by Glass Steagal.

Given that... how would Glass Steagal not being repealed, have prevented anything?

 

[Andylusion]

too stupid by 1000%!!!! FDR, USSR, Red China, East Germany regulated like crazy and it didn't work but dumbto3 wants to keep trying when the USA is the least regulated and most successful.

Successful for 1% of the population.

Fuck you, asshole!

Billo.... you have it so good in this country, you are responding like a spoiled brat.

You realize that having an income of just $31K a year, places you in the top 1% wealthiest human beings on the planet?

You have a standard of living, that MOST PEOPLE ON THE PLANET CAN ONLY DREAM OF......... and you have the absolute mindless stupidity, and lack of gratefulness, to say that only the 1% benefit?

No sir. You are scum sucking spoiled brat, whose parents clearly FAILED you by not teaching you how good you have it here.

If you really think socialism is so much better... then how about you, for once in your pathetic and useless life, put your money where your mouth is, and move to Venezuela, Cuba, N.Korea, even Argentina. You go live there, under a socialized system of hopelessness, and you'll be BEGGING to come back to the lowest-class lifestyle you have here.

But we all know you won't. You would be weaping like a baby if you had to live in the conditions most of the world has. Just another spoiled snotty loud mouth brat American. Proof we have a failure of parents in our country.

 

[Dad2three]

This law separated commercial and investment banks. IMHO the repeal of this important legislation was one of the main causes which lead into the 2008 crisis.

What are your thoughts on this topic?
Should this law be reinstated? What would be the downside ? Who is proffiting from the current legislation and who would loose if it was reinstated?

Glass Steagall Legislation - Wikipedia the free encyclopedia

The article on the 1933 Banking Act describes the legislative history of that Act, including the Glass–Steagall provisions separating commercial and investment banking. As described in that article, between 1930 and 1932 Senator Carter Glass (D-VA) introduced several versions of a bill (known in each version as the Glass bill) to regulate or prohibit the combination of commercial and investment banking and to establish other reforms (except deposit insurance) similar to the final provisions of the 1933 Banking Act.

Absolutely it should be re-instated and derivatives should be outlawed. The sum total of derivative liability for the big banks is about $600 trillion. They just passed a banking law that states if any bank goes belly up, the derivative creditors get first dibs on the money left in the bank. Now when a bank goes down, they seize your funds. You're what they call an "un-insured creditor". It's called a "bail in".

Glass-Steagall would stop all this bullshit.

We also need to start investing in "public banks".

What are you people smoking??

Glass Steagall would not stop any of that.

Yep

NEED REGULATORS ON THE BEAT

Examining the big lie: How the facts of the economic crisis stack up

Here are key things we know based on data. Together, they present a series of tough hurdles for the big lie proponents.

•The boom and bust was global. Proponents of the Big Lie ignore the worldwide nature of the housing boom and bust.

A McKinsey Global Institute report noted “from 2000 through 2007, a remarkable run-up in global home prices occurred.” It is highly unlikely that a simultaneous boom and bust everywhere else in the world was caused by one set of factors (ultra-low rates, securitized AAA-rated subprime, derivatives) but had a different set of causes in the United States. Indeed, this might be the biggest obstacle to pushing the false narrative.

Nonbank mortgage underwriting exploded from 2001 to 2007, along with the private label securitization market, which eclipsed Fannie and Freddie during the boom.

•Private lenders not subject to congressional regulations collapsed lending standards

Examining the big lie How the facts of the economic crisis stack up The Big Picture




Bush;s documented policies and statements in timeframe leading up to the start of the Bush Mortgage Bubble include (but not limited to)

Wanting 5.5 million more minority homeowners
Tells congress there is nothing wrong with GSEs
Pledging to use federal policy to increase home ownership
Routinely taking credit for the housing market
Forcing GSEs to buy more low income home loans by raising their Housing Goals
Lowering Invesntment banks capital requirements, Net Capital rule
Reversing the Clinton rule that restricted GSEs purchases of subprime loans
Lowering down payment requirements to 0%
Forcing GSEs to spend an additional $440 billion in the secondary markets
Giving away 40,000 free down payments
PREEMPTING ALL STATE LAWS AGAINST PREDATORY LENDING


But the biggest policy was regulators not enforcing lending standards.


FACTS on Dubya s great recession US Message Board - Political Discussion Forum

 

[Dad2three]

too stupid by 1000%!!!! FDR, USSR, Red China, East Germany regulated like crazy and it didn't work but dumbto3 wants to keep trying when the USA is the least regulated and most successful.

Successful for 1% of the population.

Fuck you, asshole!

Billo.... you have it so good in this country, you are responding like a spoiled brat.

You realize that having an income of just $31K a year, places you in the top 1% wealthiest human beings on the planet?

You have a standard of living, that MOST PEOPLE ON THE PLANET CAN ONLY DREAM OF......... and you have the absolute mindless stupidity, and lack of gratefulness, to say that only the 1% benefit?

No sir. You are scum sucking spoiled brat, whose parents clearly FAILED you by not teaching you how good you have it here.

If you really think socialism is so much better... then how about you, for once in your pathetic and useless life, put your money where your mouth is, and move to Venezuela, Cuba, N.Korea, even Argentina. You go live there, under a socialized system of hopelessness, and you'll be BEGGING to come back to the lowest-class lifestyle you have here.

But we all know you won't. You would be weaping like a baby if you had to live in the conditions most of the world has. Just another spoiled snotty loud mouth brat American. Proof we have a failure of parents in our country.

YOU KNOW CONSERVATIVE ECONOMICS IS A FAILURE WHEN THEY NEED TO COMPARE IT TO THIRD WORLD NATIONS, LOL

The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness.

John Kenneth Galbraith



It really is quite laughable to hear people refer to Warren, Obama, and the Democrats in general as "far left" and/or "socialist." I think it is a point of view issue. The Republicans have been pulled so far to the extreme right by the Tea Party that, from their vantage point, just about ANYONE else seems like a leftist. How else do you explain Glenn Beck calling John McCain a "progressive?"

 

[EdwardBaiamonte]

The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness.
John Kenneth Galbraith

Galbraith was a silly communist!! Not surprising that dumbto3 love him!


For example, who can forget his infamous 1984 quote that the communist system in the former Soviet Union was superior to capitalism because, according to Galbraith, the communists somehow made better and more efficient use of its "manpower" than did the West? Indeed, to the very end, Galbraith was a socialist impersonating an economist.


John Kenneth Galbraith, an intellectual icon of the Old Left and New Left, said of the Soviets’ overtaking of Poland after World War II: “Russia should be permitted to absorb Poland, the Balkans, and the whole of Eastern Europe in order to spread the benefits of Communism” (Emphasis added).

 

[EdwardBaiamonte]

How else do you explain Glenn Beck calling John McCain a "progressive?"

dear, who cares? Freedom from liberal govt is the basic principle of America. Why not go to Cuba where you belong?

 

[EdwardBaiamonte]

But the biggest policy was regulators not enforcing lending standards.

dear, FDR USSR Red China all thought they picked the regulations that would work. What does that teach you. Sadly, as a typical liberal you simply lack the IQ to understand how capitalist regulation works.

 

[EdwardBaiamonte]

too stupid by 1000%!!!! FDR, USSR, Red China, East Germany regulated like crazy and it didn't work but dumbto3 wants to keep trying when the USA is the least regulated and most successful.

Successful for 1% of the population.

Fuck you, asshole!

you think only 1% have smart phones and flat screen TV's.

Also, did the liberal know that $400K puts you out of the top 1%. Is $399k not successful to you?

See why we are positive that the liberal will be slow?

 

[Billo_Really]

you think only 1% have smart phones and flat screen TV's.

Also, did the liberal know that $400K puts you out of the top 1%. Is $399k not successful to you?

See why we are positive that the liberal will be slow?

Bullshit innuendo's, don't prove shit.

 

[Billo_Really]

Billo.... you have it so good in this country, you are responding like a spoiled brat.

You realize that having an income of just $31K a year, places you in the top 1% wealthiest human beings on the planet?

You have a standard of living, that MOST PEOPLE ON THE PLANET CAN ONLY DREAM OF......... and you have the absolute mindless stupidity, and lack of gratefulness, to say that only the 1% benefit?

No sir. You are scum sucking spoiled brat, whose parents clearly FAILED you by not teaching you how good you have it here.

If you really think socialism is so much better... then how about you, for once in your pathetic and useless life, put your money where your mouth is, and move to Venezuela, Cuba, N.Korea, even Argentina. You go live there, under a socialized system of hopelessness, and you'll be BEGGING to come back to the lowest-class lifestyle you have here.

But we all know you won't. You would be weaping like a baby if you had to live in the conditions most of the world has. Just another spoiled snotty loud mouth brat American. Proof we have a failure of parents in our country.

Why don't you come down to the 49ner Tavern in Long Beach, Ca on a Friday night between 4-5:30pm and say that to my face mother-fucker?

I usually sit right here!



Come on down, asshole. Say something about my parents with me standing a foot in front of your arrogant, narcissistic, dumbass self.

BTW, talking about someone's family is a big no-no at this website, punk!