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Forum Post: Time Magazine Promotes Glass-Steagall Option - tide turning?

Posted 2 years ago on May 25, 2012, 11:47 a.m. EST by arturo (3169) from Shanghai, Shanghai
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The continuing publicity and calls for reinstating Glass-Steagall are prominently led by Time Magazine, in a new article, "The Case for Banking Regulation," datelined June 4, by Rana Foroohar, and posted this week in advance.

Time's two-page piece opens by citing the JPMorgan Chase "fiasco," to say that Wall Street interests have lobbied and dictated in Washington, D.C., all along — from Dodd-Frank becoming law in July 2010, to the present — for so-called banks to do anything they choose to.

"Dodd-Frank was supposed to be a way of capturing the spirit of the Glass-Steagall banking law, enacted in 1933... But under constant assault by the banking lobby, Dodd-Frank retreated from that goal, which is why a small but vocal group of economists, politicians and activists are asking whether we shouldn't restore Glass-Steagall, or put in place something like it, as a way of making banking safer. As Senate candidate from Massachusetts Elizabeth Warren puts it, 'Banking should be boring, and that's inconsistent with trading.' "

"It's a debate worth having.... I'm all for re-examining the merits of Glass-Steagall and how it might be updated for today's market..."

In a posting May 23 on MarketWatch.com, "What Washington is eyeing after J.P. Morgan trade," author Robert D. Orol reports that Republicans might rally around Thomas Hoenig, former chairman of the Kansas City Fed and an advocate of Glass-Steagall, who in March became a Commissioner on the Board of the Federal Deposit Guarantee Corporation. Orol writes, "Another idea [for today's financial mess] that has some Congressional staffers and legislators talking is a concept put forward by former Kansas City Federal Reserve Bank President Thomas Hoenig that would bar big banks from broker-dealer activities or sponsoring hedge funds or buyout firms outright.

"The move wouldn't be a complete return to the Glass-Steagall Act — a law approved in 1933 and eliminated in 1999 that prohibited a commercial bank from investment-banking activities...." Orol observes that, "Jaret Seiberg, analyst at Guggenheim Securities LLC in Washington, said the Hoenig plan is getting considerable attention on Capitol Hill..."

And typical of local media coverage is this week's article in Minnesota, in the St. Cloud Times: "Our View: JP Morgan Loss Fuels Reform Calls." It states, "Another suggestion involves reinstating the Glass-Steagall Act, which came about in the Great Depression to stabilize banking but was repealed in the late 1990s to allow banks to expand and enter the securities industry. In other words, deregulation..."

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7 Comments


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[-] 1 points by Renneye (3732) 2 years ago

Thanks for this post. It does raise the question, how does a pro-Glass-Steagall article make its way into the .01% globalist owned TIME magazine?

Sorry, I'm having a momentary lapse from my usual hopeful self. We'll have to see how this plays out. The jury is still out on this one.

Interesting. With the level of loss at our doorstep, the globalists certainly have to make it look as though they are at least considering doing something.

A full reinstatement of Glass-Steagall would fill the void of deregulation enjoyed by the elite for the last decade, but I just can't see them doing it with the level of greed that exists in their mindset.

Here they are talking about reinstating Glass-Steagall, but not the way it was. So they'll re-examine it, monkey with it, debate it, back and forth over months and months....on the spinning wheel.

At least its being discussed. That's a good thing I suppose.

If we expose the criminal oligarchs and get government back to state and local levels where they should be, we can create and reinstate laws like Glass-Steagall and keep it out of the federal governments clutches.

[-] 1 points by arturo (3169) from Shanghai, Shanghai 2 years ago

I understand your concerns, however, there does come a time in wars when factions of an opposing party decide to switch sides. This may be one of those moments. There even is a republican senator now advocating a return to Glass Steagall.

By the way, once a bankruptcy reorganization would be completed through Glass Steagall, what policy for economic recovery would you advocate? Some would like to see a new New Deal financed by a national bank.

[-] 1 points by DKAtoday (28455) from Coon Rapids, MN 2 years ago

The removal of Glass-Stegall was definitely the opening of Pandora's box for the financial world ( WallStreet ) to abuse the economy's of the world.

Freeze assets charge and convict white collar criminals strip them of all their personal assets.

Separate Investing from savings and loan activities.

Reinstate Glass-Stegall.

No one is above the law.

[-] 1 points by SingleVoice (158) 2 years ago

It's about time attention is being drawn to the repeal of Glass-Steagall. The repeal is one of the most important components that started this mess.

[-] 1 points by MattLHolck (16833) from San Diego, CA 2 years ago

money dams have already collected enough to buy the world

glass stiel will stop one way money is moved from others

[-] 1 points by Nevada1 (4529) 2 years ago

Good post arturo.

[-] 1 points by arturo (3169) from Shanghai, Shanghai 2 years ago

Thank you.