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.
Because this has worked so fabulously here in the United States, the ECB has announced all of the expected expansive measures but one, the asset-backed securities (ABS) purchases, which will, however, soon follow.
Beyond LaRouche PAC's own aggressive international campaign for the restoration of Glass-Steagall, other notable U.S. figures and international media outlets are continuing to keep Glass-Steagall front and center in the headlines...
So, we have a situation as such that we do have options, particularly what's happened in France in attacking the British system of the British, in trying to break up the euro system which is a very useful thing to bring off...
In an interview with the Britain's Daily Telegraph columnist Liam Halligan, Tory MP David Davis, who has held a seat in the Parliament for the Conservative Party since 1987, came out strongly for Glass-Steagall...
Parliament deputies from Berlusconi's Forza Italia as well as from the right-wing FDI (Fratelli d'Italia) presented their draft bill for banking separation, at a press conference two days ago...
Speaking at a Washington conference on "new populism" of the Campaign for America's Future, Glass-Steagall sponsor Sen.
Tuscany City Councilman Gabriele Chiurli has started a procedure for a national Glass-Steagall Act. Italian law allows a local legislative body to introduce national draft bills, which, however, must be first approved by the local legislature—in this case, the Regional Council of Tuscany.
FDIC Vice-Chair Thomas Hoenig pointed to a number of problems which still threaten the soundness of the U.S. banking system in interview published in the May 20, 2014 CNN/Fortune magazine in an interview with Eleanor Bloxham, CEO of the Value Alliance.
Digital Journal, an internet journal based in Canada, which was previously a glossy magazine, ran a lengthy interview with U.S. Senate candidate Kesha Rogers Thursday. Its introduction calls Kesha "a most interesting U.S. Senate candidate."
An unnamed official at India's central bank, the Reserve Bank of India, told Reuters that the country fully expected to be hit again by capital flight and chaos in the international financial markets, as had happened a few years ago.
A group of Italian Parliament deputies belonging to Berlusconi's party Forza Italia, led by Micaela Biancofiore, have filed a legal brief with Rome prosecutors demanding an investigation of revelations in Timothy Geithner's memoir Stress Test, about an EU plot to overthrow the Italian government of Berlusconi in 2011.
Former Italian Economy Minister Giulio Tremonti warned against a repetition of the 2008 crisis in a video interview with the online daily affaritaliani.it: "In my view, there is the threat that a crisis would break out again, because the same conditions are back again...
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.