“Bank bill legislation promises the most significant overhaul in regulation of U.S. banks since the Depression”
CBS Marketwatch (5-21-10)
“Sound and fury signifying nothing”
Bill Tatro (5-21-10)
On the surface, it would appear both the House and Senate are jumping on populist opinion and attempting to overhaul Wall Street. However, most individuals in the financial community recognize that the first step toward cleaning-up Wall Street is to reinstate the Glass-Steagall Act. Established in 1933, Glass-Steagall essentially separated commercial banking and investment banking when Congress recognized that banks being involved in day-to-day trading with investors and depositors money was the surest way for both chaos and failure.
Unfortunately in 1999, Bill Clinton, with prodding from former Treasury Secretary Robert Rubin and current Director of the White House’s National Economic Council Larry Summers, signed into legislation the repeal of Glass-Steagall. Since that time, we have experienced the dot-com crash, the housing collapse, the credit fiasco, and now the sovereign debt crisis. The genie is out of the bottle, and chaos reigns supreme. Here’s the rub. Congressmen and senators receive significant financial support from Wall Street, and as we’re learning from our relationship with China, you don’t bite the hand that feeds you. You might even say, “It’s All About Money.”
Is the current bank bill significant legislation or simply a smoke screen to make the populous feel happy? In my opinion, until we restore the Glass-Steagall Act, it will be one crisis after another.
Keep your seatbelt fastened tight.
Till next time,
Bill
CBS Marketwatch (5-21-10)
“Sound and fury signifying nothing”
Bill Tatro (5-21-10)
On the surface, it would appear both the House and Senate are jumping on populist opinion and attempting to overhaul Wall Street. However, most individuals in the financial community recognize that the first step toward cleaning-up Wall Street is to reinstate the Glass-Steagall Act. Established in 1933, Glass-Steagall essentially separated commercial banking and investment banking when Congress recognized that banks being involved in day-to-day trading with investors and depositors money was the surest way for both chaos and failure.
Unfortunately in 1999, Bill Clinton, with prodding from former Treasury Secretary Robert Rubin and current Director of the White House’s National Economic Council Larry Summers, signed into legislation the repeal of Glass-Steagall. Since that time, we have experienced the dot-com crash, the housing collapse, the credit fiasco, and now the sovereign debt crisis. The genie is out of the bottle, and chaos reigns supreme. Here’s the rub. Congressmen and senators receive significant financial support from Wall Street, and as we’re learning from our relationship with China, you don’t bite the hand that feeds you. You might even say, “It’s All About Money.”
Is the current bank bill significant legislation or simply a smoke screen to make the populous feel happy? In my opinion, until we restore the Glass-Steagall Act, it will be one crisis after another.
Keep your seatbelt fastened tight.
Till next time,
Bill
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