Glass-Steagall is the indispensible first step to global economic recovery. It will immediately hault the onset of hyperinflation, remove government committment from toxic debts, end too-big-to-fail, and force separation of commercial banking functions from investment banking functions.
Legislation to Restore Glass-Steagall, “The Return to Prudent Banking” Act, was introduced into the 112th congress as HR1489. It garnered massive institutional support and 84 co-sponsors in the house of representatives. “The Return to Prudent Banking” Act has been re-introduced in the 113th Congress as HR-129.
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.
May 23 (EIRNS)—The Shanghai Academy of Spaceflight Technology has put a model of China's first space probe designed to orbit Mars, on display at the Minhang District Museum in Shanghai. This probe will be launched by a Russian rocket in October 2009.
May 10 (EIRNS) Russian President Vladimir Putin and Kazakh President Nursultan Nazarbayev met today in Astana, capital of Kazakhstan, to discuss the "Plan for the Joint Actions of Russia and Kazakhstan" for 2007-08, Itar Tass and Novosti reported. This is their second meeting already this year.
Lyndon LaRouche made the following introductory remarks at a private luncheon with Washington-based diplomats on May 8. The remarks were followed by 90 minutes of animated dialogue.
Russian President Vladimir Putin arrived in Murmansk today to chair a meeting of the State Council presidium and the Naval Board to discuss how to speed up development of Russia's port and naval transport infrastructure, Itar-Tass reports.
Viktor Razbegin, Deputy Head of Industrial Research of the Russian Economy Ministry, announced to reporters in Moscow April 18 that a transport and pipeline link under the Bering Strait, to Alaska, would be built. It is part of a $65 billion project to supply the U.S.
[Sources: C-Span Newsmakers, April 8; Space Daily , April 2, CCTV, Russia]
April 29, 2005 —As a follow-up to the appeal launched in July 2000, in favor of reorganizing the world's financial system, which appeal was endorsed by many international leaders, including former heads of government, Members of Parliament, trade unionists, businessmen, civil rights and church figures, the Schiller Institute's Chairwoman Helga Zepp-LaRouche has now issued a fresh appeal.
Italian Resolution:A Call for a New, Just Monetary System