Warren, McCain introduce bill to bring back Glass-Steagall

It will happen eventually, probably after another disaster. Then things will be fine for awhile and it will get repealed.

 

Mad props to Mccain.

 

Glass Steagall might have indirectly allowed investment banking to be monopolized and clustered in New York, limiting supply of corporate finance products and inflating the value, prestige and salaries of professionals providing those services. I think the same systemic risk management could occur with some kind of assets under management caps or market share limits.

 

Wow. Great step forward. I like Elizabeth Warren on many issues.

 

I couldn't agree more. But my solution would be to not have any federal deposit insurance.

 

This is expected from Elizabeth Warren. What is surprising is her working with Mccain.

 

I remember a discussion about this on the board years ago about the genie being out of the bottle. Too much vertical integration being done by these banks to be truly broken up.

It's worth a shot in any case.

 

No thanks.

 

Why is this a good idea?

 

McCains always been an aisle crosser. Moderate on a lot of issues - if he hadn't have picked Palin as a running mate, we just might have had a President McCain.

 

Could you imagine 2008 without FDIC?

 

He was old, did a poor job campaigning, and was following an extremely unpopular President with the economy collapsing. His VP didn't cost him the Presidency. GWB & the economy cost him that.

 

Maybe because taxpayers shouldn't be on the hook for guaranteeing private bank deposits?

 

Nothing chaps my sense of freedom more than having a stable banking sector.

I'd rather open carry my way to a bank run. That's some good freedom. The hard uncut ****.

 

McCain swung to the far right to win the nomination and has opposed some of his previous moderate ideas, both before and after the election. He wasn't the same "maverick" he was before. Seeing this out of McCain 10 years ago wouldn't have been surprising. Seeing it today is a little surprising.

 

I believe the poster was referring to the socializing of risk for private return.
Had history accommodated, having a national bank that just sold Treasuries, made home and consumer loans and held citizens money safely might have been a good idea. Investors would have the choice to invest in higher returning bank entities without expecting reimbursement of their losses.

 

Yes, exactly this.

 

A stable banking sector is nice. Stable financial markets would be nice, too. Perhaps we should create a federal agency for backstopping private losses there as well.