http://www.govtrack.us/congress/bill.xpd?bill=h112-1489 A bipartisan bill that would reinstate the limits on financial institutions under Glass-Steagall has been introduced in Congress. Basically, this bill would rebuild the walls between commercial and investment banks that existed between the beginning of the Great Depression until Gramm-Leach-Bliley repealed key portions of that law. Though there is plenty of blame to go around to a LOT of different parties for the current financial crisis, the repeal of Glass-Steagall made a lot of the crisis possible. The biggest reason that the banks were "too big to fail" is that their failure would have compromised commercial bank holdings, which include individual depositors' as well as corporations' funds. One of the things that I believe should never happen is that the government should NEVER have to give money to private industry to bail them out. This bill will help to ensure that Main Street is less subject to the activities of Wall Street that more resemble a casino than a bank. What do you think?
One Great Recession too late. Needs to be done to prevent another. However there is still the pressing issue that continues to be ignored about the rating agencies and their inherent problem of being paid by the very people they are rating.
But I thought it also allowed the larger combanks to "save" I-Banks like Lehman, Bear and Merrill; either from insolvency or at least from doing worse damage from their MBS/CDO positions.
