Forum Post: Don't Just Occupy Wall Street... Defeat Them!
Posted 13 years ago on Oct. 6, 2011, 12:33 p.m. EST by riethc
(1149)
This content is user submitted and not an official statement
There are two bills in Congressional committee waiting to be brought to the floor of Congress: Marcy Kaptur's HR 1489 and Maurice Hinchey's HR 2451. If either of these two bills are passed by Congress, it will restore the Glass-Steagall Act, a law which had kept financial institutions separate, by enforcing by law that banks either be commercial banking institutions (mortgages, savings, etc.) or financial investment institutions (derivatives, CDOs, etc.).
Originally, this law came into being in 1933 during the Great Depression. Over time, its provisions had been eroded by many new laws until it was, for the most part, completely overturned in 1999 with the Financial Services Modernization Act (aka. the Gramm-Leach-Bliley Act).
Congressmen, such as Byron Dorgan, spoke on the floor of Congress before the vote on the Gramm-Leach-Bliley Act and warned that this would lead to a disaster in the financial system. (1) Dorgan goes as far a forecasting the collapse of the financial markets and the ensuing bailouts.
Now, over ten years after the repeal of Glass-Steagall, we can see the repercussions of removing the firewall between investment and commercial banking. Restoring the Glass-Steagall Act now, will break up the "too big to fail" banks and force them to sink or swim based on their own fiscal integrity.
No more bailouts for the banks. Support HR 1489 and HR 2451. Demand Glass-Steagall now!
Reference: 1. http://www.youtube.com/watch?v=OvnO_SH-4WU&feature=results_video&playnext=1&list=PL325E5EF5DAB7D072
I agree we need to put a firewall back up between the brokers ( aptly named) and the Comm. banks. The removal of Glass-Stegall led directly to this whole nightmare.
seems like shell shuffling
I don't believe separating investment banking from housing banking will change the behavior of the institutions
This has nothing to do with shell shuffling. If we cut these banks from their deposits they won't be able to cover their "investments", which are largely toxic assets that have no value. They will no longer be "too big to fail" and they'll die by their own logic. It's poetic justice.
housing loans will continue to buy in renters with ballooning payments and forclose
Glass-Steagall is only the first step. Once Wall Street's influence is gone we can address issues such as the housing market with sane policy.
"cat's in the cradle and the silver spoon
the little boy blue and the man on the moon
when ya coming home
I don't know when
but we'll have a good time then"
-cat's in the cradle
lol What?
sorry,
I was being wistful
I've been waiting for justice to come around for a long time
It's not the end game, but it's a pretty damn good start.
This.