Comments on: Will Cantwell-McCain Reinstate Glass-Steagall?

By: elaine

elaine — Sun, 20 Dec 2009 06:33:30 +0000

First order: repeal the Gramm-Leach-Billing Act & then try to unwind from there. But that still doesn’t address how to deal with the inevitable takings suits from the banks, who in case you’ve forgotten, have already merged with the investment houses i.e. BOA with Merill-Lynch, etc. This whole mess is a good example of how hard it is to put the genie back in the bottle…don’t forget Goldman-Sachs is now technically a bank holding company as are several large insurers i.e. The Hartford, etc. Also rid yourself of any illusions that many large corps remain capitalist entities, ie GE, the corruption runs both ways, this ain’t a shack up of emergency need, these clowns & the gov are actually happily married. If there was a time for remedial divorce it was before the melt down, it’s too late now. Also note the Chinese & Russians got Iraq’s oil contracts…no one wants US treasuries anymore..crappy interest rates running behind the rate of inflation…we’re screwed. Soon almost every nickle & dime we have will go to interest on the debt & entitlements.

By: Tricia

Tricia — Sat, 19 Dec 2009 16:15:26 +0000

I agree with Ferd here–something about missing ethical standards also played a huge role.

By: ctfish

ctfish — Sat, 19 Dec 2009 16:10:38 +0000

Glad to hear your opinion on this, LD. It sounded compelling, and that Volcker too was for repealing it too is really persuasive.

Especially persuasive was reading how much Volcker was against the repeal of Glass-Stegal in the first place, and reading WHY he was against repealing it.

By: I'm a Linda too

I'm a Linda too — Sat, 19 Dec 2009 15:33:08 +0000

I hope they reinstate it.

By: Peggy Sue

Peggy Sue — Sat, 19 Dec 2009 15:08:40 +0000

“Which all boils down to the very simple, inelegant truth that Wall Street lacks a set of ethical standards by which to guide their conduct. . .”

That should be written in large letters, Ferd!

I picked up a quote regarding Volcker’s opinion and I think Larry’s right, people do respect the man’s sensibility. I just wish he’d get more airtime.

Anyway, the quote:

“Paul Volcker looked to finance’s recent past and saw little to like, noting that he has yet to see any evidence that financial market innovations have provided any benefit to the economy.

Apparently, Volcker thinks the industry reached a peak when it invented the ATM . . .”

I hope Cantwell and McCain pursue this aggressively because I’m sure the investment banks will fight it tooth and nail. It may not be a solution, but it’s a start.

By: Ferd Berfle

Ferd Berfle — Sat, 19 Dec 2009 14:44:25 +0000

Very simply, I believe the repeal of Glass-Steagall has shown that Wall Street does not possess the leadership and risk management capabilities to properly monitor and manage the risks embedded in institutions of this size and scope.

Which all boils down to the very simple, inelegant truth that Wall Street lacks a set of ethical standards by which to guide their conduct.