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.
Legislation to restore Glass-Steagall, “The Return to Prudent Banking Act of 2011”, was introduced into the 112th Congress and garnered massive institutional support and 84 cosponsors in the House of Representatives.
On January 3rd, 2013 “The Return to Prudent Banking” Act was re-introduced by Rep. Marcy Kaptur (D-OH) in the 113th Congress as H.R. 129. And on May 16, 2013 a matching bill was introduced into the Senate by Sen. Tom Harkin (D-IA) as S. 985.
LaRouchePAC Policy Committee member Bill Roberts of Michigan delivered the following statement in response to a federal judge's decision approving Detroit's bankruptcy filing.
A Wall Street Journal signal article entitled "Fed Eyes Financial System's Weak Link" issues another warning on the growing danger of a crash of so-called "repo", or collateralized securities lending markets, which are unregulated and out of control.
The Maine Bankers Association has come out strongly against the Glass-Steagall resolution introduced before the NCSL. The Association claims that the resolution falsely assumes that the repeal of Glass-Steagall contributed to the economic bubble and the resulting crash.
Liam Halligan, a well-known proponent of Glass-Steagall for the U.K. and internationally, who writes in the London Telegraph, returned to the topic in his latest column, after many months of not raising the subject of Glass-Steagall. Halligan concluded his Nov.
On Nov. 29, Black Friday, Marc Faber, editor and publisher of The Gloom, Boom & Doom Report, told CNBC he believes a "massive speculative bubble" has encroached on everything from stocks and bonds to bitcoin and farmland. He attributed the vast bubble to...
In an opinion piece published by the Belgian daily De Morgen, and in line with the leaflet currently distributed by Agora Erasmus, top Belgian economist Paul De Grauwe, an advocate of a Glass-Steagall strict banking separation, rips into pieces the ...
Another prominent American columnist, Newsweek's Eleanor Clift, has weighed in supporting Elizabeth Warren and the promotion of Glass Steagall...
Burnaby, population 223,000, is the third-largest city in British Columbia. Its local paper, Burnaby Now, reported Nov. 27th on it's City Council's endorsement of restoration of the Glass-Steagall Act as
Milan, Nov. 25, 2013
Dear Sen. Warren,
First of all, we would like to applaud your initiatives for Glass-Steagall in the US Senate. Your work is extremely important beyond the borders of your own country as well, since it aims at improving the social and economic conditions of the whole world.
The $3.5 trillion poured by the Fed into systemic banks ($1.4 trillion still held as excess reserves by the European big banks...
The latest column of Pam Martens's widely-read "Wall Street on Parade" blog takes on the Federal Reserve's hyperinflationary money-printing policy with Glass-Steagall...
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.