They got it right after the first depression. Re-install the act, break up the big banks from commercial lenders and fund managers.
Nothing is "Too Big To Fail." Tell the SEC to do its' dog-gone job or quit!
The Return of The Glass-Steagall Act of 1933
Tags: regulation
Comments (3)
45. Repeal S. 900 [106th]: Gramm-Leach-Bliley Act of 1999: Amends the Banking Act of 1933 (Glass-Steagall Act) to repeal prohibitions: (1) against affiliation of any Federal Reserve member bank with an entity engaged principally in securities activities (securities affiliate); and (2) against simultaneous service by any officer, director, or employee of a securities firm as an officer, director, or employee of any member bank (interlocking directorates). (Gramm, 1999) This bill legalized bank fraud. This was not the intent of this legislation but was the result. This made collateralized-debt-obligation (CDO) and credit-default-swaps (CDS) legal. The creation of CDO’s spurred a massive explosion of irresponsible and predatory lending. The really astonishing aspect of these securities was that they were able to get AAA bond ratings. “Rolling Stone” writer, Matt Taibbi, wrote “The Big Takeover” spells out the history of this financial mess very well. The question that you the citizens must ask now is who passed this bill and why are they still in power. One senate and one house representatives from my district of Iowa signed this bill in the affirmative.
• One idea proposed to deal with the bank securities problem was to institute a bad bank program where the United States pools all of these securities together. This is a good idea. Once all of these securities are pooled, they then can be pulled apart. The asset pool created can then be better assessed as to value. Large holders of these securities can wait out the valuation or take hard assets as repayment. Valuations must be based on fair value coupled with future valuation estimates.
While people and the media were talking about Bill and Monica's consentual sex, they passed NAFTA, Telecommunication Act of 1996, and repealed the Depression Act to protect banks...Glass Segeagall Act.
When there is a distraction on the news look behind it to see what is really going on.
Repeal S. 900 (106th Congress): Gramm-Leach-Bliley Act of 1999, link: http://opengov.ideascale.com/akira/dtd/4165-4049
Repeal H.R. 4541: Commodity Futures Modernization Act of 2000, link: http://opengov.ideascale.com/akira/dtd/4166-4049
Vote NO on S.R. 773: Cybersecurity Act of 2009, link: http://opengov.ideascale.com/akira/dtd/4179-4049
Vote NO to HR 875: Food Safety Modernization Act of 2009, link: http://opengov.ideascale.com/akira/dtd/4163-4049
Vote No on HR 2401: No Fly, No Buy Act of 2009 – Anti-Gun Bill, link: http://opengov.ideascale.com/akira/dtd/6455-4049