Page 1 of 2 12 LastLast
Results 1 to 10 of 17

Thread: Why hasn't obama/dems put back the barriers that Glass-Steagall had erected????

  1. #1
    Administrator Bill Cosby's Avatar
    Join Date
    Apr 2009
    Location
    State of Mind
    Posts
    52,403
    Blog Entries
    36

    Default Why hasn't obama/dems put back the barriers that Glass-Steagall had erected????

    What will be the consequences???

    Glass-Steagall Act (1933)
    Adapted from an article in the Law Library.


    The Glass-Steagall Act, also known as the Banking Act of 1933 (48 Stat. 162), was passed by Congress in 1933 and prohibits commercial banks from engaging in the investment business.

    It was enacted as an emergency response to the failure of nearly 5,000 banks during the Great Depression. The act was originally part of President Franklin D. Rooseveltís New Deal program and became a permanent measure in 1945. It gave tighter regulation of national banks to the Federal Reserve System; prohibited bank sales of securities; and created the Federal Deposit Insurance Corporation (FDIC), which insures bank deposits with a pool of money appropriated from banks.

    Beginning in the 1900s, commercial banks established security affiliates that floated bond issues and underwrote corporate stock issues. (In underwriting, a bank guarantees to furnish a definite sum of money by a definite date to a business or government entity in return for an issue of bonds or stock.) The expansion of commercial banks into securities underwriting was substantial until the 1929 stock market crash and the subsequent Depression. In 1930, the Bank of the United States failed, reportedly because of activities of its security affiliates that created artificial conditions in the market. In 1933, all of the banks throughout the country were closed for a four-day period, and 4,000 banks closed permanently.


    As a result of the bank closings and the already devastated economy, public confidence in the U.S. financial structure was low. In order to restore the banking public's confidence that banks would follow reasonable banking practices, Congress created the Glass-Steagall Act. The act forced a separation of commercial and investment banks by preventing commercial banks from underwriting securities, with the exception of U.S. Treasury and federal agency securities, and municipal and state general-obligation securities. Likewise, investment banks may not engage in the business of receiving deposits.
    Investment banking consists mostly of securities underwriting and related activities; making a market in securities; and setting up corporate mergers, acquisitions, and restructuring. Investment banking also includes services provided by brokers or dealers in transactions in the secondary market.

    The Glass-Steagall Act restored public confidence in banking practices during the Great Depression. However, many historians believe that the commercial bank securities practices of the time had little actual effect on the already devastated economy and were not a major contributor to the Depression. Some legislators and bank reformers argued that the act was never necessary, or that it had become outdated and should be repealed.

    Congress responded to these criticisms in passing the Gramm-Leach-Bilely Act of 1999, which made significant changes to Glass-Steagall. The 1999 law did not make sweeping changes in the types of business that may be conducted by an individual bank, broker-dealer or insurance company. Instead, the act repealed the Glass-Steagall Act's restrictions on bank and securities-firm affiliations. It also amended the Bank Holding Company Act to permit affiliations among financial services companies, including banks, securities firms and insurance companies. The new law sought financial modernization by removing the very barriers that Glass-Steagall had erected.
    We judge ourselves by our ideals; others by their actions.
    Howard Zinn

    We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can't have both.

    Louis D. Brandeis

  2. #2

    Default

    Quote Originally Posted by Bill Cosby
    What will be the consequences???

    Glass-Steagall Act (1933)
    Adapted from an article in the Law Library.


    The Glass-Steagall Act, also known as the Banking Act of 1933 (48 Stat. 162), was passed by Congress in 1933 and prohibits commercial banks from engaging in the investment business.

    It was enacted as an emergency response to the failure of nearly 5,000 banks during the Great Depression. The act was originally part of President Franklin D. Rooseveltís New Deal program and became a permanent measure in 1945. It gave tighter regulation of national banks to the Federal Reserve System; prohibited bank sales of securities; and created the Federal Deposit Insurance Corporation (FDIC), which insures bank deposits with a pool of money appropriated from banks.

    Beginning in the 1900s, commercial banks established security affiliates that floated bond issues and underwrote corporate stock issues. (In underwriting, a bank guarantees to furnish a definite sum of money by a definite date to a business or government entity in return for an issue of bonds or stock.) The expansion of commercial banks into securities underwriting was substantial until the 1929 stock market crash and the subsequent Depression. In 1930, the Bank of the United States failed, reportedly because of activities of its security affiliates that created artificial conditions in the market. In 1933, all of the banks throughout the country were closed for a four-day period, and 4,000 banks closed permanently.


    As a result of the bank closings and the already devastated economy, public confidence in the U.S. financial structure was low. In order to restore the banking public's confidence that banks would follow reasonable banking practices, Congress created the Glass-Steagall Act. The act forced a separation of commercial and investment banks by preventing commercial banks from underwriting securities, with the exception of U.S. Treasury and federal agency securities, and municipal and state general-obligation securities. Likewise, investment banks may not engage in the business of receiving deposits.
    Investment banking consists mostly of securities underwriting and related activities; making a market in securities; and setting up corporate mergers, acquisitions, and restructuring. Investment banking also includes services provided by brokers or dealers in transactions in the secondary market.

    The Glass-Steagall Act restored public confidence in banking practices during the Great Depression. However, many historians believe that the commercial bank securities practices of the time had little actual effect on the already devastated economy and were not a major contributor to the Depression. Some legislators and bank reformers argued that the act was never necessary, or that it had become outdated and should be repealed.

    Congress responded to these criticisms in passing the Gramm-Leach-Bilely Act of 1999, which made significant changes to Glass-Steagall. The 1999 law did not make sweeping changes in the types of business that may be conducted by an individual bank, broker-dealer or insurance company. Instead, the act repealed the Glass-Steagall Act's restrictions on bank and securities-firm affiliations. It also amended the Bank Holding Company Act to permit affiliations among financial services companies, including banks, securities firms and insurance companies. The new law sought financial modernization by removing the very barriers that Glass-Steagall had erected.
    I think the answer is because the entirety of the GOP in Congress and some bought and paid for Dems are against re-instating Glass-Steagall.

    Let's look at the realistic chances for reinstating Glass-Steagall: The water downed Dodd-Frank "solution" barely passed, and the GOP has worked tirelessly to remove the only tooth from this generally toothless solution.

    What can any Congress do with one hand tied behind its back?
    Man cannot be anything other than what he is. Whatever he is, he will create a society that mirrors him. -- U.G. Krishnamurti

  3. #3
    Administrator Bill Cosby's Avatar
    Join Date
    Apr 2009
    Location
    State of Mind
    Posts
    52,403
    Blog Entries
    36

    Default

    Perhaps I missed it, but I have not heard obama or the Dems taking the issue to the ppl, getting them fired up to get on the phone, email etc their reps......
    We judge ourselves by our ideals; others by their actions.
    Howard Zinn

    We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can't have both.

    Louis D. Brandeis

  4. #4

    Default

    Quote Originally Posted by Bill Cosby
    Perhaps I missed it, but I have not heard obama or the Dems taking the issue to the ppl, getting them fired up to get on the phone, email etc their reps......

    Uh, you've never heard of the filibuster in the Senate? And didn't know the House is controlled by Boner and his band of corporate whores?

    In this environment, no legislation of that magnitude is in the least bit possible, and you know it.

  5. #5
    Administrator Bill Cosby's Avatar
    Join Date
    Apr 2009
    Location
    State of Mind
    Posts
    52,403
    Blog Entries
    36

    Default

    Quote Originally Posted by Thai Kimchi
    Uh, you've never heard of the filibuster in the Senate? And didn't know the House is controlled by Boner and his band of corporate whores?

    In this environment, no legislation of that magnitude is in the least bit possible, and you know it.
    yes, I recall your blame the GOP nonsense........ WHen did he take over??

    How long did obama/dems have the whole enchilada???

    When, if ever will this issue become a priority??
    We judge ourselves by our ideals; others by their actions.
    Howard Zinn

    We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can't have both.

    Louis D. Brandeis

  6. #6

    Default

    Too busy sucking on the Wall Street Teat.
    "When truth becomes unpatriotic, patriotism becomes worthless."
    -BlackAsCoal

  7. #7
    Senior Member hd79's Avatar
    Join Date
    Dec 2010
    Location
    In The Wind!
    Posts
    14,739

    Default

    We've already seen the consequences. Far too many of the Dems are aligned with the big banks and financial institutions. Those already whining and crying about too much regulation from the opposition side, would be crying and whining even louder to the corporate run media 24x7 if this were ever to be revived.

    Doesn't mean that it should not be, but in the reality of today's political landscape I certainly don't expect it.

  8. #8

    Default

    Quote Originally Posted by EldonG
    Too busy sucking on the Wall Street Teat.

    a little lower.

  9. #9
    Senior Member Bruce LeeRoy's Avatar
    Join Date
    Nov 2011
    Location
    Just diggin the scene, with a gangsta lean.....
    Posts
    32,415
    Blog Entries
    27

    Default

    Quote Originally Posted by Bill Cosby
    Perhaps I missed it, but I have not heard obama or the Dems taking the issue to the ppl, getting them fired up to get on the phone, email etc their reps......
    Well that's simple, Obama is one of those paid for politicians, not real hard to figure that out.

    and if he's not, (but he is) then he is highly ineffectual in his job. Either way, he has failed the people in his duties.
    ..Judaism is a religion; but Zionism is a political movement started mainly by East European (Ashkenazi) Jews who for centuries have been the main force behind communism/socialism. The ultimate goal of the Zionists is one-world government under the control of the Zionists and the Zionist-oriented Jewish international bankers... Jack Bernstein

    "​Behold Israel is of the synagogue of Satan, who claim to be Jews though they are not, but are liars" - Revelation 3:9



  10. #10

    Default

    Quote Originally Posted by Bill Cosby
    yes, I recall your blame the GOP nonsense........ WHen did he take over??

    How long did obama/dems have the whole enchilada???

    When, if ever will this issue become a priority??

    Oh, I see. Obama can revive "the barriers that Glass-Steagall had erected" by fiat. Simply 'make it so'.....got it. I agree it's not one of his priorities, which is quite disappointing. No question there - he definitely has been ineffective reining in these pirates.

    As far as the Dems?......ever hear of the Blue Dogs? Until the voters get serious and rid Congress of 90% of the Pukes, and roughly 30% of the Dems, this is what we've got. Permanently.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •