Tuesday, July 19, 2016

Bring Back Glass-Steagall

This is the best news I have heard all month:

Republicans and Democrats are both bending over backwards to show that they are not beholden to Wall Street.

The Republican Party platform, released late Monday, calls for the return of Glass-Steagall restrictions on banks. Paul Manafort, campaign manager for presumptive GOP nominee Donald Trump, told reporters earlier Monday the language would be included.

“We believe that the Obama-Clinton years have passed legislation that has been favorable to the big banks, which is one of the reasons why you see all the Wall Street money going to [Hillary Clinton],” Manafort said.

Glass-Steagall was a Depression-era measure restricting commercial banks from the investment-banking business. The measure was repealed in 1999. Some critics contend that loosening of the banking rules played a role in the subsequent financial crisis.

You can read the rest @

Note two things:

1. It was the repeal of Glass-Steagall by Bill Clinton (yes, Bill Clinton) which greased the skids for the 2008 monetary crisis. Period. This is not the mere speculation of "some critics".

2. In spite of any promises made by either the RNC or DNC, it is unlikely the next Congress will reimpose Glass-Steagall. Neither major party is really going to declare war on Wall Street.

And that is a crying shame.

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