SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
With Glass-Steagall Revival, A Call to Bust Up the Megabanks
Five years after financial collapse, says Sen. Warren, and biggest banks are now bigger than ever
Jul 12, 2013
US Sen. Elizabeth Warren (D-MA) and others on Thursday introduced a new bill that revives the call to bust up the nation's largest banks and financial institutions by once again demanding a separation between the traditional banking practices of savings and loans from the far riskier behavior taken on by large investment, complex trading, and hedge fund operations.
The legislation, called the 21st Century Glass-Steagall Act, is designed as the modern version of the Banking Act of 1933 (the original Glass-Steagall) whose repeal in 1999 many credit with ushering in the banking deregulations that spawned the housing crisis and financial collapse of 2008.
Despite repeated efforts to "break up the big banks" by public interest groups and some legislators, all of those efforts--despite the destructive recession, foreclosure crisis, and unemployment epidemic--have been thwarted by the politically powerful financial industry represented by Wall Street lobbyists and others.
"The four biggest banks are now 30% larger than they were just five years ago," said Sen. Warren, "and they have continued to engage in dangerous, high-risk practices that could once again put our economy at risk. The 21st Century Glass-Steagall Act will reestablish a wall between commercial and investment banking, make our financial system more stable and secure, and protect American families."
Reporting to the development, Huffington Post's Zach Carter comments:
The legislation is unlikely to be signed into law, but underscores a deepening rift between the House and Senate over financial accountability. While bipartisan coalitions in the House have been moving legislation to deregulate swaps -- the complex financial products at the heart of the 2008 banking collapse -- a host of Senate bills cracking down on Wall Street risk have garnered Democratic and GOP support.
__________________________________________
We are at a crossroads
This country and this world are at a monumental crossroads. US voters have an opportunity to beat back the forces of fascism and confront the billionaires who are rigging the economy, our media system, and our democracy, making it increasingly impossible for ordinary people to get by. We’re not just talking about the election. We’re talking about what must be done once these fascist elements are vanquished from power. We need a bolder set of solutions than what either major party has so far been willing to offer and a working-class movement ready to fight like hell for it. Trump didn't emerge from nowhere. The conditions that fueled MAGA authoritarianism were created by decades of radical neoliberal economic policies and a corrupt political system dominated by corporate interests. They slashed taxes on the super-rich, promising that the benefits would trickle down. They said giveaways to the corporate titans would make life more affordable for the rest of us. It was all bullshit. And when a bitter, betrayed populace searches for someone to blame, right-wing demagogues have little trouble finding scapegoats. People know when they're being lied to, but you won't hear any of this from the corporate media. Only independent journalism—powered and funded by people who believe in building a better world—can deliver truly trustworthy daily news. If you share our vision, please contribute whatever you can to sustain our work. |
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
US Sen. Elizabeth Warren (D-MA) and others on Thursday introduced a new bill that revives the call to bust up the nation's largest banks and financial institutions by once again demanding a separation between the traditional banking practices of savings and loans from the far riskier behavior taken on by large investment, complex trading, and hedge fund operations.
The legislation, called the 21st Century Glass-Steagall Act, is designed as the modern version of the Banking Act of 1933 (the original Glass-Steagall) whose repeal in 1999 many credit with ushering in the banking deregulations that spawned the housing crisis and financial collapse of 2008.
Despite repeated efforts to "break up the big banks" by public interest groups and some legislators, all of those efforts--despite the destructive recession, foreclosure crisis, and unemployment epidemic--have been thwarted by the politically powerful financial industry represented by Wall Street lobbyists and others.
"The four biggest banks are now 30% larger than they were just five years ago," said Sen. Warren, "and they have continued to engage in dangerous, high-risk practices that could once again put our economy at risk. The 21st Century Glass-Steagall Act will reestablish a wall between commercial and investment banking, make our financial system more stable and secure, and protect American families."
Reporting to the development, Huffington Post's Zach Carter comments:
The legislation is unlikely to be signed into law, but underscores a deepening rift between the House and Senate over financial accountability. While bipartisan coalitions in the House have been moving legislation to deregulate swaps -- the complex financial products at the heart of the 2008 banking collapse -- a host of Senate bills cracking down on Wall Street risk have garnered Democratic and GOP support.
__________________________________________
US Sen. Elizabeth Warren (D-MA) and others on Thursday introduced a new bill that revives the call to bust up the nation's largest banks and financial institutions by once again demanding a separation between the traditional banking practices of savings and loans from the far riskier behavior taken on by large investment, complex trading, and hedge fund operations.
The legislation, called the 21st Century Glass-Steagall Act, is designed as the modern version of the Banking Act of 1933 (the original Glass-Steagall) whose repeal in 1999 many credit with ushering in the banking deregulations that spawned the housing crisis and financial collapse of 2008.
Despite repeated efforts to "break up the big banks" by public interest groups and some legislators, all of those efforts--despite the destructive recession, foreclosure crisis, and unemployment epidemic--have been thwarted by the politically powerful financial industry represented by Wall Street lobbyists and others.
"The four biggest banks are now 30% larger than they were just five years ago," said Sen. Warren, "and they have continued to engage in dangerous, high-risk practices that could once again put our economy at risk. The 21st Century Glass-Steagall Act will reestablish a wall between commercial and investment banking, make our financial system more stable and secure, and protect American families."
Reporting to the development, Huffington Post's Zach Carter comments:
The legislation is unlikely to be signed into law, but underscores a deepening rift between the House and Senate over financial accountability. While bipartisan coalitions in the House have been moving legislation to deregulate swaps -- the complex financial products at the heart of the 2008 banking collapse -- a host of Senate bills cracking down on Wall Street risk have garnered Democratic and GOP support.
__________________________________________
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.
To inform. To inspire. To ignite change for the common good.
News & Opinion
Trending
Common Dreams, Inc. Founded 1997. Registered 501(c3) Non-Profit
Privacy Policy