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.
Ukraine, reeling under a political coup, is also racing towards financial collapse — and such a collapse could set off financial meltdown in Russia, other emerging economies in Central Asia and Eastern Europe, and, of course, the West as a whole, as Liam Halligan wrote in a commentary published in the Telegraph Feb. 22.
The Democratic Party has filed its own draft bill for banking separation in the Italian Senate, calling for a fake separation
"that takes into account developments on the issue in the main member-states of the European Union and of the guidelines expressed by the European Commission."
A new Glass-Steagall resolution, SJ 8, has been introduced in the Maryland State Senate...
Sen. Charles Grassley (R-Iowa) slammed Barack Obama for breaking the law, and again abusing executive power by allowing the Treasury Department to establish guidelines on how banks can provide services for businesses selling marijuana. The Treasury Department issued a memorandum outlining those guidelines on Feb. 14.
Massachusetts Democrat Michael Capuano, a co-sponsor of H.R. 129 to reinstate Glass-Steagall, reported in an e-mail to his constituents that he had taken an opportunity recently to discuss the need to reinstate Glass-Steagall with Federal Reserve Chairman Janet Yellen.
In a lengthy article in Rolling Stone Feb.
See LaRouchePAC's Official Glass-Steagall page for the most up-to-date developments.
Corporate Speculator Icahn Says Restore Glass-Steagall
A series of claims and court cases against banks and rating agencies in Italy is the sign of a lynch-mob sentiment in the population. It is not an accident that those institutional actions occurred a few days after the vote in the Parliament for a EU7.5 billion bailout of Italian banks from the Bank of Italy.
Maryland and Arizona were the two latest state legislatures to introduce Glass-Steagall resolutions in 2014. Maryland HJR 8 was filed on Thursday, Feb. 6, with a total of 50 sponsors, which is more than one-third of the House Chamber of the General Assembly.
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.