by Im Alec on September 25th, 2008
Because it was a false protection - it did not fix the problem it was supposed to fix. The four big investment banks, the ones that Glass Steagal created to be diffeernt commercial banks have either failed, been take over, or turned themselves into mixed banks.
It is widely believed amongst financial theorists that the reason for the Depression was that goverment dod exactly the *wrong* thing in response to the Crash of 1929. They responded to the fire going out by pouring water on it. The allegedly correct respons is to put a bit more fuel on.
by Lady Alathia of Vulcan on September 25th, 2008
"The limitations of the GSA on the banking sector sparked a debate over how much restriction is healthy for the industry. Many argued that allowing banks to diversify in moderation offers the banking industry the potential to reduce risk, so the restrictions of the GSA could have actually had an adverse effect, making the banking industry riskier rather than safer. Furthermore, big banks of the post-Enron market are likely to be more transparent, lessening the possibility of assuming too much risk or masking unsound investment decisions. As such, reputation has come to mean everything in today's market, and that could be enough to motivate banks to regulate themselves.
Consequently, to the delight of many in the banking industry (not everyone, however, was happy), in November of 1999 Congress repealed the GSA with the establishment of the Gramm-Leach-Bliley Act, which eliminated the GSA restrictions against affiliations between commercial and investment banks. Furthermore, the Gramm-Leach-Bliley Act allows banking institutions to provide a broader range of services, including underwriting and other dealing activities."
~ http://www.investopedia.com/articles/03/071603.asp?Page=2
by Pilgrim on September 25th, 2008
If McCain voted to end this protection...He has NO CHANCE of getting my vote ever for any office. Bill Clinton should be tarreed and feathered out of Washington and Harlem.
Is America still the "land of the free"?
by keithold thanks all baggers on December 16th, 2009
| 3 people like this
What is there to like about Republicans
by mentat on February 6th, 2010
| 1 person likes this
I saw the TV coverage of the TEA party-honestly if I were an American I would be so embarrassed by the speeches (especially of T. Tancredo)!
by DA BEN DAN yanggui zi COAT on February 5th, 2010
| 1 person likes this
Are You Keeping Up With the John Edwards Mess?
by Doyler on February 2nd, 2010
| 1 person likes this
Is the corruption in Washington smothering America's future?
by Doyler on January 29th, 2010
| 2 people like this
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