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Senators push Wall Street restructuring with Depression-era rule

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The Depression-era Glass-Steagall Act may live again, if Senators John McCain (R-AZ) and Maria Cantwell (D-WA) have anything to say about it.

Glass-Steagall, introduced in 1933, separated commercial and investment banking, essentially prohibiting institutions from using consumers’ deposits for risky bets on the stock market — one of the main causes of the depression, it’s proponents said. However, it was repealed in 1999 with passage of the Gramm-Leach-Bliley Act.

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Were it reintroduced today, it could fundamentally change the structure of many U.S. financial institutions.

The senators’ proposal was echoed by a failed amendment sponsored by “Maurice Hinchey of New York, John Conyers of Michigan, Peter DeFazio of Oregon, Jay Inslee of Washington, and John Tierney of Massachusetts,” according to Shahien Nasiripour, writing for Huffington Post.

“The law’s repeal ushered in an era marked by big banks getting even bigger,” he continued. “The country’s four largest — Bank of America, JPMorgan Chase, Citigroup and Wells Fargo – now control more than half of the nation’s mortgages, two-thirds of credit cards and two-fifths of all bank deposits.”

While over 50 financial regulatory reforms are being considered in the United States and Europe, not a single one would truly “transform” market operation, Bloomberg reported. Even John S. Reed, former co-CEO of Citigroup, agrees that Congress was wrong to repeal Glass-Steagall, the publication continued.

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“Resurrecting Glass-Steagall would reduce the need for the taxpayer bailouts that added between 9 percent and 49 percent to the profits of the 18 biggest U.S. banks in 2009, according to Dean Baker, co-director of the Center for Economic & Policy Research in Washington,” Bloomberg added.

Think Progress noted: “Plus, House Majority Leader Steny Hoyer (D-MD) said today that House Democrats are ‘considering reinstituting the Depression-era Glass-Steagall Act,’ which placed a regulatory wall between depository institutions and investment banks, preventing financial conglomerations like Citigroup from coming into being ‘As someone who voted to repeal Glass-Steagall, maybe that was a mistake,’ Hoyer said.”

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The Obama administration is opposed to a reinstatement of Glass-Stegall. To that effect, Newsweek added:

Obama administration officials have dismissed the idea that the financial sector should or can be changed in more fundamental ways than they are now proposing. You can’t turn back the clock, they say, and the new requirements they plan to impose on big banks to hold more capital in reserve, put up $150 billion for a rainy-day rescue fund, and disclose more of their risky trades should be enough to keep the financial sector from imploding again. Many of these requirements, among others, are contained in two giant bills making their way through Congress—one that passed the House last week and another that will be debated in the Senate in the new year. “I think going back to Glass-Steagall would be like going back to the Walkman,” says one senior Treasury official.

“Senator Carter Glass, a former Treasury secretary and the founder of the U.S. Federal Reserve System, was the primary force behind [Glass-Steagall],” explained Investopedia, a Forbes Digital company. “Henry Bascom Steagall was a House of Representatives member and chairman of the House Banking and Currency Committee. Steagall agreed to support the act with Glass after an amendment was added permitting bank deposit insurance (this was the first time it was allowed).”

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… then let us make a small request. Like you, we here at Raw Story believe in the power of progressive journalism — and we’re investing in investigative reporting as other publications give it the ax. Raw Story readers power David Cay Johnston’s DCReport, which we've expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and efforts to harm workers exploited by abusive bosses. We’ve launched a weekly podcast, “We’ve Got Issues,” focused on issues, not tweets. Unlike other news sites, we’ve decided to make our original content free. But we need your support to do what we do.

Raw Story is independent. You won’t find mainstream media bias here. We’re not part of a conglomerate, or a project of venture capital bros. From unflinching coverage of racism, to revealing efforts to erode our rights, Raw Story will continue to expose hypocrisy and harm. Unhinged from corporate overlords, we fight to ensure no one is forgotten.

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Angry Minnesota farmer bashes ‘insulting’ Trump comments that ‘we’re great patriots’ during his trade war

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President Donald Trump has insulted at least one Minnesota farmer by his claim that farmers are "great patriots" who want him to continue his trade fight against China.

"This wound is self-inflicted, by our president," said Gary Wertish, who is the Minnesota Farm Bureau president. "We definitely agreed with it in the beginning. But it doesn’t appear that there’s a plan B. Some of the callous comments come, especially from the president, you know, that farmers are 'winning,' we’re 'great patriots,' that’s very insulting. That’s coming from someone who never has faced the challenges of a family farmer. I go into the bank and tell the lender I can’t make the payment because we lost our market? The banker is going to tell me you don’t have to make your payment because you’re a patriot."

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MSNBC pundit nails Trump for only attacking Black voices on Fox News

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Democratic strategist Joel Payne called out President Donald Trump Sunday for his attacks on Fox News when he was leaving New Jersey.

Before Trump landed in Marine One at Morristown, New Jersey, he tweeted an attack on Juan Williams, the only Black pundit on the Fox News show "The Five."

https://twitter.com/realDonaldTrump/status/1163167660764532736

Trump briefly addressed Williams, before he told members of the press that he found it appalling Fox News hired a friend of Hillary Clinton's, whose name he couldn't even remember.

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Missouri official choose Dr. Seuss’ ‘Oh the Places You’ll Go’ for swearing-in ceremony instead of ‘The Bible’

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A Missouri county official is being both celebrated and attacked after a decision to forgo The Bible for her swearing-in ceremony and opted for a copy of Oh, The Places You'll Go by Dr. Seuss.

The Friendly Atheist at Patheos captured the story, posting a photo of St. Louis City Councilmember Kelli Dunaway's children holding a copy of the book while she took her oath of office.

This was the scene last week at the STLCO government center. Democrats took back control of the council and @DunawayKelli was sworn in on a copy of “Oh the Places you’ll go” with her children❤️ so proud to be part of #TeamKelli pic.twitter.com/iJ1dxfZ1Zg

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