« OTC Derivatives Monster Mess Gets Worse | Main | The Sphinx is Scared »

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d83451c0bf69e2010534d98f5a970c

Listed below are links to weblogs that reference Understanding The End Of Glass-Steagall Act:

Comments

Blunt Force Trauma

Freaky. I was just reading a few minutes ago, an article (below) that contains a mention of the 'Glass-Steagall Act of 1999'.

Brian Gaynor: Twin towers of debt threaten to implode

"The flip side of this is that they will have to raise more capital to maintain their current level of lending because of stricter capital requirements as bank holding companies. Another problem with the US financial system was the repeal of the Glass-Steagall Act in 1999.

This act was introduced in 1933 to separate investment banking and commercial banking activities. This is because the commercial banks took too much risk with depositors' money in the 1920s by underwriting speculative sharemarket offerings."

http://tinyurl.com/45o8jd


Blunt Force Trauma

Whoops. That should have read: ''Glass-Steagall Act of 1933'.

Dutch East India

The FDIC doesnt have to bail out anyone. The FBI needs to arrest Bernanke and the other wall street bankers. This is a no brainer. Why does he even have a seat at the table! He is broke! And congress is giving him the countries money!

Blunt Force Trauma

"The FDIC doesnt have to bail out anyone."

You're right, Dutch. But it's the FDIC that'll need bailing out VERY soon when more banks fail, "bailout" or no "bailout".

As Elaine says and I agree, "Arrest Them All!"

Jojo

The gangsters profiting from the racket of extracting interest payments on debt in the present system that is now dramatically imploding will resort to Fascist controls in a shameless attempt to continue the con game.
Suppressing the price of precious metals and suspending gold and silver sales to hide the depreciation of the US currency will accelerate until outlawing ownership of PM's is declared (again).
http://www.sfgate.com/cgi-bin/article.
Preventing capital flight by declaring it illegal to take money out of the country will soon be the law.
If I was a man of means instead of someone with holes in his pockets, I would immediately take a substantial sum of money out of the US and deposit it in a country where I would go and could watch the ensuing chaos and pray for the peasants with pitch forks back in the US.
Elaine, if you were a woman endowed with baubles and wealth what would you do?

Elaine Meinel Supkis

I would purchase a politician, of course.

Jojo

I thought I wouldn't be able to bait you with an escaped x-pats perch sipping on drinks with umbrellas, and just knew for certain you would stay involved and not run to the sidelines, thinking and chuckling, I warned them.
Yes, buying a politician, or a bunch of them and turning them into educators and role models would be the righteous action to take. It's off to the rural re-education camps for all politicians.
In the mean time, with the means we do have, I guess we should just keep writing and pestering them to not to forget about the lil' people and the Constitution.

Buffalo Ken

What are you suggesting Jojo? Taking to the streets? Pitchforks? Hm. It may be necessary I suppose. Jefferson for sure thought so.

Even so, I think there is nothing wrong with running off to the sidelines, but I also think most of us taking the effort here are not on the sidelines at least on some levels. I'm involved myself.

Hell Elaine mentioned something recently about fixing a roof. I wonder how many of these Wall Street-types have fixed a roof recently? I don't wonder about the politicos in DC cause I'm pretty damn sure the answer to that is evident. The DC politicos are not on the roof...oh no, they are in the clouds.

But I'd put forth that "little do they know" about the storms forming below. Just sort of a bit of lingo. You know.

Peace,
Ken

Buffalo Ken

But to end on a hopeful note, I still think the dust is settling its just the status quo is DEAD. Lets just admit it and then move on and start getting done what needs to be done for the sake of us ALL. DUH.

rockpaperscizzors

Frontline has a great piece on Glass Steagall. My fave moment:
Just days after the administration (including the Treasury Department) agrees to support the repeal, Treasury Secretary Robert Rubin, the former co-chairman of a major Wall Street investment bank, Goldman Sachs, raises eyebrows by accepting a top job at Citigroup as Weill's chief lieutenant. The previous year, Weill had called Secretary Rubin to give him advance notice of the upcoming merger announcement. When Weill told Rubin he had some important news, the secretary reportedly quipped, "You're buying the government?"

And Bailout Bob Rubin is an advisor to Obama, go figure.
http://www.pbs.org/wgbh/pages/frontline/shows/wallstreet/weill/demise.html

rockpaperscizzors

Here's Arthur Leavitt's interview January 13, 2003.
Excerpt:What happened in Congress? ... When you came in as head of the SEC in the early 1990s, what was the situation with Glass-Steagall and the banking laws?

It was apparent to me that the protections of Glass-Steagall had already largely eroded. But Congress, at several times, nearly passed a bill to do away with Glass-Steagall. It was clear that it was a question not of whether but when Glass-Steagall would go. Millions of dollars were pouring in the campaign coffers of senators and congressmen who were set to do this.


Who was pushing?

The insurance industry, the Federal Reserve Board, the White House, the investment bankers, the commercial bankers -- just about everybody wanted it. ...

It was an incredible scene, but I saw it played through twice. Once was during a period of time when Al D'Amato chaired the [Senate] Banking Committee -- and was not successful in getting the repeal of Glass-Steagall -- where hundreds of lobbyists descended upon the Congress, were in the hallways morning, day and night. Lobbyists for the insurance companies, for the investment banks, for the commercial banks, pulling for their own parochial interests.

*DING DING DING*
Then when PHIL GRAMM became chairman of the banking committee, the same group came down, only they were now supplemented by lobbyists for the DERIVATIVES INDUSTRY, for other new products that had developed, and for the stock exchanges and the options exchanges. They were buttonholing senators and congressmen, morning, day and night.

...We had Congress constantly bearing down on the Commission: "Don't take steps which would hurt the firms, don't take steps which would change the way business is being done." ...


Elaine Meinel Supkis

Goldman Sachs basically runs our Treasury now.

This is why it is going bankrupt and the GS guys are filthy rich. After all, if you are going to rob a bank, the best way is to run the bank.

Buffalo Ken

well hells bells, I plan on starting a new type of bank. Battery banks. I've already registered the websites for it except I'm still thinking about the best way to try to set it up.

Being feffefly filthy rich is rapidly going to change from being "an asset" to "a liability" - at least from the old status quo way of looking at things. Just my opinion.

And once again, thank-you Elaine for being such a great teacher.

Peace,
Ken

swindler - Takes one to know one

I just watched the debate between the 2 candidates. What a coward Obama is/was.Me thinks somebody has got to him and he is just going thru the motions of running as a candidate.

Buffalo Ken

oh "feffef-ly" means whatever the hell you want it too...you choose!

I think so many have been waiting so to speak for "the crisis" even though when it all ends (so to speak) hopefully we'll be able to look back and say "that was not a crisis, it was an opportunity - one that we took advantage of collectively...why not".

Peace,
Ken

Buffalo Ken

swindlers all about....hey if you mean no harm, then there is no foul...

Buffalo Ken

of course, you should know the consequences of what you do. If you don't, then you are not inwit.

Buffalo Ken

Don't be a dimwit. Be inwit.

Buffalo Ken

and what the hell, best I can tell there are very few if any dimwits around here....although there may be many lurkers who are hesitant to speak up...well that makes sense to me.

Peace,
Ken

Oops

Once again......debate results:

Winners.....Military Industrial Complex, Big Oil, Nuclear Energy, and Wall Street.

Losers.....The American people.

Buffalo Ken

Oops - who says so? Just you. I don't agree.

Buffalo Ken

We have so much here (in much thanks to China and others..). There are awesome tools to be readily had for a most reasonable price. We can use these tools. No need to get crazy. No need to suggest losers. No need for any more bombs in my humble opinion.

Ken

Elaine Meinel Supkis

BERNANKE IS IN HIDING!!!! HAHAHA!


Will tell more.

Paul S

Elaine: The Batman video is good, but IMHO it doesn't beat the "Hitler in the Bunker" video. That one is worth watching again. Thanks for posting it.

Neon Vincent

Elaine, I'm glad you liked "The Dark Bailout" enough to include it in your post above. I have another image for you. You called Bernanke "The Sphinx." So, what does that make Paulson? Pharaoh Paulson, the Money God accountable to no one.

I recommend the rest of her blog as well, including images of McCain and Palin playing with toy soldiers at the White House, Playing displaying Lady Liberty as a hunting trophy, Uncle Sam rewriting the banking laws, Palin as a nasty prom queen, and Palin as a mean librarian who has replaced the science section with The Bible.

Neon Vincent

jojo, you wrote:

Preventing capital flight by declaring it illegal to take money out of the country will soon be the law.

Elaine may have posted this already, as I first heard about it from Pluto, who also reads her blog, but here is a news item about the first steps to achieve that condition.

N.Y. Post: THE FEDS HAVE COME UP WITH AN EXIT TAX!

HERE'S a Yankee Doodle Doozy of an idea from the taxman: if you've had enough of the United States and choose to renounce your citizenship, you will now have to give up a large chunk of your assets.

The same new tax also will hit foreigners who are living and working in this country legally - with a so-called green card - once they decide to return home.

In fact, anyone who has $600,000 in assets and a lust for becoming a citizen of France, Italy or maybe an island in the Pacific should take note of this one.

Thanks can be given to a bill that passed Congress recently and was quietly signed by President Bush two weeks ago.

"Two weeks ago" was this past June.

joe

Elaine, looks like Citibank received a stealth bail-out just last week.

"It may seem like a long time ago, but it was only on Monday of last week (Sept.
15) that Lehman Brothers filed for bankruptcy; the equally big news was that the
Federal Reserve declined to bail Lehman out.

I've read several details regarding Lehman's demise and learned some interesting
facts. The bankruptcy filing was "pre-dawn" on the 15th, according to Bloomberg.
The filing document is available in PDF form on the Internet: it names Lehman's
largest unsecured creditors, and the dollar amounts of their claims.
http://www.creditslips.org/creditslips/Lehman.pdf

"Citibank, N.A., as indenture trustee" is listed as Lehman's largest unsecured
creditor, with a claim of "Approximately $138 billion" in "Bond Debt."

Following Lehman's filing, J.P. Morgan transferred $138 billion in two payments
to Lehman Brothers -- $87 billion on Sept. 15th and $51 billion on Sept. 16th.
Bloomberg reported that the transfer of funds was "to keep financial markets
stable," and to settle Lehman's "securities transactions with customers...and
clearance parties, according the [court] filing."

After these transfers, also according to Bloomberg, the Federal Reserve Bank of
New York made two subsequent payments to J.P. Morgan: $87 billion on Sept. 15th
and $51 billion on Sept. 16th, for a total of $138 billion.

Lehman's bankruptcy court filing said that J.P. Morgan's $138 billion transfer
to Lehman was "At the request of... the Federal Reserve Bank of New York." I
have not been able to find an explanation -- in media reports or from the
Federal Reserve -- of why J.P. Morgan needed to be a party to the $138 billion
that Lehman received, and that the Fed transferred.

I'm also unable to find an announcement from the Fed that it was making the
transfer.

One could infer that J.P. Morgan was used as a third party in order to avoid the
perception that, despite statements regarding not bailing out Lehman, the Fed
was indeed assuming $138 billion in obligations that were in default upon
Lehman's bankruptcy.

One could also infer that such an action by the Fed amounted to a $138 billion
bailout of Citibank, which was the dollar value of the Lehman-issued bonds
Citibank held. Citibank issued a Sept. 15 press release saying that its "role in
this issue is administrative in nature and does represent exposure for Citi to
Lehman." The statement did not identify who or what owned the $138 billion in
bonds.

I hope that more facts become available showing that the inferences are
mistaken, and I invite journalists and others to bring any such relevant facts
to light. "

Elaine Meinel Supkis

Neon, the professional artist you linked to is most excellent. I love her art!

About the exit bill: England did this after WWI and then even more after WWII. Of course, there are exceptions in this bill: DUAL CITIZENS can do as they please! Namely, no Jewish US citizen has to ever renounce their civil rights, they get to have total rights in two countries at once. This certainly includes their wealth which flows between the two without effort or control.

Neon Vincent

I'm glad you liked her work. She seems to have become more ferocious in the past few months.

Thanks for the tidbit about the Exit Tax being used by the British when their Empire was going bankrupt.

Yusef

"If I was a man of means instead of someone with holes in his pockets, I would immediately take a substantial sum of money out of the US and deposit it in a country where I would go.."

Interesting, good comment.

However, I think the tense of the verbs is wrong.

I think I would write it like this,

"Being a man of means instead of someone with holes in his pockets, I long ago took all substantial sums of my money out of the US and deposited it in a country where I would go [etc.]"

These fat cats moved their money off shore a long, long time ago. Congress could put a law in place tomorrow morning to prevent capital flight and it wouldn't change a thing. Too late to close the barn door. If such a law went into place now, the real purpose would be further oppression of the plebes, not some economic effect.

One of the things I learned right here at COLN was that at the time of the bailout of the GSE's, of the five largest foreign holders of Freddie and Fannie debt were these three on the list: Cayman Islands, Belgium, and Luxembourg. That was spelled out in news articles across the country-- the debt is tax sheltered and flown the coop, but we suckers are obligated to honor and protect it even so.

Elaine Meinel Supkis

How can we pass such a law if the top financial gnomes own Congress?

andrew

I'm Chinese. I'm curious aobut that do you think jewish people control usa finance?

kellyn

President Clinton himself stated:

"I don't see that signing that bill had anything to do with the current crisis. Indeed, one of the things that has helped stabilize the current situation as much as it has is the purchase of Merrill Lynch by Bank of America, which was much smoother than it would have been if I hadn't signed that bill ... On the Glass-Steagall thing, like I said, if you could demonstrate to me that it was a mistake, I'd be glad to look at the evidence."

nikeairmaxs2010

Also it considered as athelete shoes, which can protect foot become vibram five fingers shoes sale into athelete's foot. Vibram five fingers is a shoe that separates the toes, so that all the muscles, tendons and ligaments in the Vibram FiveFingers Women foot and leg are used and exercised as they should be. The benefit of wearing the unique shoe is that it does provide protection Vibram FiveFingers Bikila to the foot, Vibram FiveFingers Sprint and includes grips ideal for sport that the shoe is lacking.

Intensify your workout vibram five fingers kso with the increased toning and circulation created by the Komodo Sport's barefoot imitation technology. The 2mm footbed is stitch-free and seamless to reduce friction and provide greater comfort with every step. Hook and loop enclosures at the heel and instep pull the stretch nylon upper into place, shaping it to the contours of your foot for the perfect fit every Vibram FiveFingers shoes time. You'll be prepared for your cross-training activities, thanks to the 4mm Vibram TC1 rubber outsole, which provides a secure grip on all types of surfaces and is sturdy enough to keep your feet well protected. From the breathable materials to the impeccable construction and fitness-oriented design, the Komodo Sport will give you the burn you're looking for without compromising on comfort or style.http://www.vibramfivefingersshoes-sale.com/

moncler shop 2012

It's great to hear from you and see what you've been up to. In your blog I feel your enthusiasm for life. thank you.

Belstaff Outlet

Don't know what is wrong what is rite but i know that every one has there own point of view and same goes to this one

The comments to this entry are closed.

Blog powered by Typepad