Glass-Steagall is the indispensable first step to global economic recovery. It will immediately halt the onset of hyperinflation, remove government commitment from bailing out toxic debts, end too-big-to-fail banks, and force a separation of commercial banking functions from investment banking functions, thus cleaning up the nation's banking system to make way for real, long-term investments.
There are now two bills in each house calling for the restoration of President Roosevelt's 1933 Glass-Steagall law. H. R. 129 & its Senate companion bill S. 985, introduced by Rep. Marcy Kaptur and Senator Tom Harkin respectively, and most recently, S. 1282, known as the "21st Century Glass-Steagall Act," championed by Senator Elizabeth Warren, whose companion House bill, H.R. 3711 was recently introduced on December 11, 2013.
Lyndon LaRouche today forcefully urged Sen. Elizabeth Warren (D-Mass.) and other Glass-Steagall sponsors to act immediately to push for Congressional debate and vote.
"Don't wait until the perfect moment when you think you have the votes lined up. You have to campaign to win. You fight to get it through because it has to be done."
Peter Morisi, a University of Maryland Smith School of Business professor has written this week in Breitbart that Fed Chair Janet Yellen is compounding mistakes made by Ben Bernanke and Tim Geithner by covering up evidence of real inflation. He warned yesterday that such actions will only drive Congress to impose political constraints on the Fed that will make matters even more chaotic.
Senator Elizabeth Warren and her original co-sponsors of the 21st Century Glass-Steagall Act of 2013 (S. 1282) -- John McCain, Maria Cantwell, and Angus King -- published on opinion piece on CNN’s website Thursday which said in its concluding paragraph...
This morning, CNN posted an article written by Senators Warren, (D-MA), McCain (R-AZ), Cantwell (D-WA), and King (I-ME), entitled: "We need to rein in 'too big to fail' banks"...
In the Senate Banking Committee on July 15, Sen. Elizabeth Warren pressured the not-very-forthcoming Federal Reserve Chairperson, Janet Yellen, on breaking up the big U.S.-based banks...
In an interview which will be published in EIR, one of the initiators of the Italian Parliamentary Petition on Argentina said the Petition has already gained a hundred signatures...
American Banker reported July 10 what U.S. bankers themselves are saying—don't take seriously the reports that bank lending is rising back to "a record level". Unlike European banks' plunging lending activity, U.S.
Petitions signed by nearly 600,000 American citizens, calling for Senate action on the 21st Century Glass-Steagall Act, were delivered yesterday afternoon to the bill's primary sponsor, Senator Elizabeth Warren (D-Mass.), as well as all other United States Senators, asking them to support the bill...
Pam Martens, writing in yesterday's edition of her widely-read blog "Wall Street on Parade: the citizen's guide to Wall Street", warns that a new binge of "dark pool" stock trading by the major Wall Street banks is underway.
The assistant editor of the London Telegraph penned a quietly hysterical article yesterday, which begins: "It's not quite Creditanstalt, the Austrian banking collapse that marked the beginning of the Great Depression...," and goes on to say that last week's profit warning from the Austrian Erste Bank, on top of the insolvency of Austria's Hypo Alpe-Adria bank earlier this year, is nonethele
By Helga Zepp-LaRouche
A PDF of this statement is available HERE.
The Minister of Transport and Water Works of Guyana, Robeson Benn, speaking in his capacity as Guyana's Acting Foreign Minister at the hastily-called Meeting of Consultation of Ministers of Foreign Affairs of the Organization of American States (OAS) in Washington, D.C., Thursday, changed history by calling for a broad discussion across the Americas on Franklin Roosevelt's 1933 Glass-Steagall law,
How It Works
Since 1999, banks have been allowed to use commercial deposits and assets as fuel for securities trading on the derivatives market.
Because commercial and speculative assets are so heavily comingled, the government is forced to protect the assets of banks making risky bets through near perpetual bailouts and purchasing of toxic debt.
It was the derivatives bubble that blew up the system and bankrupted the US banks in the 2007-2008 crash.
1. Commercial Banking institutions have one year to divest themselves of all non-commercial banking units, with no cross management or ownership between commercial and non-commercial units.
2. Commercial Banks are barred from using more than 2% of its capital for the creation, sale, or distribution of securities (certain bank-qualified securities are exempted)
3. Prevents Commercial Banks from loaning their commercial deposits into such vehicals as would support the creation and circulation of securities.
4. No securities of low or potentially low value can be placed by a bank into its insured commercial bank units.
* Adds provision stating Glass-Steagall is the preeminant regulator of the banks, limiting banks from putting its depositors and shareholders at risk.
Glass-Steagall forces separation of commercial from investment banks, it ends Too Big To Fail, bars government bailouts, and will stop the onset of hyperinflation.