U.S. Rep. John Conyers: Restore Glass-Steagall protections

[marmar]

from the Detroit Free Press:



Posted: Nov. 17, 2009
COMMENTARY

Restore Glass-Steagall protections
BY JOHN CONYERS JR.


This week marks an important anniversary that will go unnoticed in many corners. Ten years ago, a little known Depression-era law known as the Glass-Steagall Act was repealed. It passed with large margins in both houses of Congress and was signed by President Bill Clinton. On Wall Street, the titans of capitalism cheered while it went unnoticed by most Americans that an important guard against financial instability and conflict of interest had been wiped away.

The Glass-Steagall Act had a simple premise: America’s banking sectors and investment houses need to remain separate to prevent banks from gambling on the stock market with our savings. President Franklin Roosevelt knew that banks, like other institutions, could not be trusted to police themselves. After witnessing the widespread failure of financial institutions in the Great Depression. he recognized a firewall was needed between the casino on Wall Street and the private investment engines of Main Street

Unfortunately, we forgot this lesson. Without Glass-Steagall serving as a critical check on the power of banks, the floodgates of speculation were opened. The banks leveraged personal savings accounts to trade in exotic securities and assets. Banks, insurance companies, and investment firms merged at an astounding pace. No longer content to simply finance home mortgages, these new hybrids began creating and selling securities based off of the speculative value of shaky mortgages. The banks took on more risk because risk was profitable. No one paid much attention to what would happen when the speculation bubble burst.

Now we know. Just as in the Great Depression, when bank investments in securities caused the market to fail, present day reckless investing caught up with Wall Street. Because the banks had become “too big to fail,” the American taxpayer was forced to step in and save the titans of capitalism from themselves, subsidizing the losses and privatizing the gains. ........(more)

The complete piece is at: http://www.freep.com/article/20091117/OPINION05/91116067/1322/Restore-Glass-Steagall-protections

[BrklynLiberal]

1. Should there even be a question on this matter??

[Skidmore]

2. There shouldn't be, but we aren't exactly out there demanding it either.

[still_one]

3. they aren't listening to us. The bailout with no oversight of the financials should tell us that

[still_one]

4. You are right, and I am sorry but the Democrats in Congress are really dense

Just bring back the regulation prior to reagan

This isn't rocket science

The unfortunate thing is that this country is not a country for the people and by the people, it is a country for the corporations, and by the corporations

[fascisthunter]

5. I don't think the Dem Leadership wants to Bring Back Regulation

prior to Reagan or any other President.

[Echo In Light]

7. That fact does seem to be the primary stumbling block many Dems can't wrap their head around

[rudy23]

6. They're not dense. Just not on our side.

What percentage of Congress is fiscally liberal. 10%?

[still_one]

10. you're right /nt

[dana_b]

8. God bless John Conyers

but it ain't gonna happen! His friends in Congress stand to lose too much if that happens.

[BadgerKid]

9. Link to Wikipedia (Gramm-Leach-Bliley Act)

Gramm-Leach-Bliley Act

[Nikki Stone1]

17. .

.

[snot]

11. Nouriel Roubini has said

that throughout recorded history, there's been a more or less regular cycle of economic bubble-and-bust every ten years, with only one exception during which we managed to prevent such crises from arising for a solid fifty years: the fifty years while Glass-Steagall and other post-depression securities regulation remained in effect.

[BrklynLiberal]

12. Guess no one has been reading George Santayana....

"Those who do not learn from history are doomed to repeat it..."

[nashville_brook]

14. that's powerful stuff.

loves my some Roubini.

[BlueJac]

13. Is that the same John Conyers who..............

has made so many threats and promises to do something that I can keep track of? I have given up on almost all these do nothing elected officials. The I'm gonna never got one thing done!!!

[Roland99]

15. OMG! About fucking time *someone* said this!!!!!!!!!!!!!!!

[Nikki Stone1]

16. YES!

Let's hope....

[EndElectoral]

18. I'll beleive it when someone introduces a bill rather than giving lip service

Glass-Steagall should have been reintroudced back in January. Inexcusable.

[omega minimo]

19. .

[mod mom]

20. Sorry I missed rec'd this thread!