War on Wall Street as Congress Sees Returning to Glass-Steagall

[kpete]

Source: Bloomberg

War on Wall Street as Congress Sees Returning to Glass-Steagall

By Alison Vekshin and James Sterngold


Dec. 28 (Bloomberg) -- A one-page proposal gaining traction in Congress could turn back the clock on Wall Street 10 years, forcing the breakup of banks, including Citigroup Inc.

Lawmakers in both parties, seeking to prevent future financial crises while soothing public anger over bailouts and bonuses, are turning to an approach that’s both simple and transformative: re-imposing sections of the 1933 Glass-Steagall Act that separated commercial and investment banking.

Those walls came down with passage of the Gramm-Leach- Bliley Act of 1999. A proposal to reconstruct them, made by U.S. Senators John McCain and Maria Cantwell on Dec. 16, would prevent deposit-taking banks from underwriting securities, engaging in proprietary trading, selling insurance or owning retail brokerages. The bill could also force the unwinding of deals consummated during the financial crisis, including Bank of America Corp.’s acquisition of Merrill Lynch & Co.

“The impact on Wall Street would be severe,” Wayne Abernathy, an executive vice president at the American Bankers Association, said in a telephone interview.

Read more: http://www.bloomberg.com/apps/news?pid=20601109&sid=aeQNTmo2vHpo&pos=10

[FreakinDJ]

1. When does the "Ground War Start"

[billyoc]

183. Boots on the ground, that's the only way to be sure to get them all.

[ixion]

2. Well, Wall St. declared war on Main St. decades ago

so Main St.'s retaliation is long overdue, in my opinion.

[Hatchling]

194. If we declare the War and win,

we won't be putting these War Criminals on trial either. (Sorry, couldn't help the snark)

On the brighter side, it will certainly be entertaining to see a lot of the too big too fail chopped up.

This will also be a change I'd believe in. Seeing is believing however.

[abelenkpe]

3. that'd be a nice start. nt

[quakerboy]

4. I'll believe it when I see it passed

and enforced

[Enthusiast]

92. Wise course of action. nt

[mazzarro]

102. +1

[dysfunctional press]

170. they have to gut it and make it meaningless first...

then it will pass.

[theFrankFactor]

189. Won't Happen

[tomg]

191. Notice how it says

"re-imposing sections of the 1933 Glass-Steagall Act." I can only assume that they are re-imposing the sections that don't mean shit. Or maybe they are going to re-impose all of the prepositions.

[dkf]

5. I would love to hear where Obama stands on this.

This is a great test to see if he is owned by wall street or not

[change_notfinetuning]

48. Don't you mean where Rahm stands on this? That's what counts. n/t

[bajamary]

85. well, R & O haven't proposed to reinstate GS

Rahm's and Obama's lack of action in reinstating Glass Steagall tells me that neither of them supports this regulation.

Furthermore, neither R or O have proposed a specific financial regulation which tells me they do not want to rock a boat that feeds them, so to speak.

[Name removed]

113. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Lorien]

115. Where does he say that he insisted on reinstating Glass-Steagall?

That should have been an action taken on day one.

[Capn Sunshine]

119. it says he strongly favors regulation of the Banking Industry

unlike the message of the post I responded to.

[Hydra]

139. He also strongly favored the public option

And strongly favored various other things until it came time to implement them.

I'll also be watching this with great interest to see where he stands.

[fascisthunter]

185. no kidding

[No Elephants]

152. He campaigned on a strong public option and no mandate, too. Also repeal of DADT and DOMA.

And so on. Then, when he got into office, he said he could do nothing about any of those things: it was all up to Congress. However, he did support with apparent enthusiasm the health care bill the Senate produced and he also was reported to have opposed reimportation of prescription drugs.

Point is, you cannot point to what he campaigned on as proof of very much, other than he really did want to be the Presidential nominee of the Democratic Party.

I don't know that Glass Steagall (and the rest of the safeguards enacted after 1929, but dismanted since Reagan) could have been reinstated on Day One, but legislation attempting that could have been sent to Congress on Day One. In the crisis the nation--the globe--was in at that time, almost anything would have passed and relatively quickly, too. Bush's TARP and Obama's spending bill sure did. In any case, it would have been worth a try then.

[wordpix]

198. Obama now has a chance to guide the HC process to get a final bill

Let's see what he'll do, now that he knows making love with the repukes results in no consummation and rejection in the end. :think:

[No Elephants]

150. Obama hired Rahm, not the other way around. And, either way, Obama is responsible.

[Enthusiast]

173. Zactly.

And we hired Obama.

[rollingrock]

128. Obama and Geithner are against reinstating Glass-Steagull

Spurning Obama, McCain and Cantwell propose resurrecting Glass-Steagall to break up Wall Street.

Newsweek

...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.


...Among the harshest critics has been Cantwell, who has pressed Treasury Secretary Tim Geithner to take a firmer stand in preventing loopholes in derivatives legislation. "I think they've said the right things, but they've left it entirely up to a Congress which is seduced by lobbying pressures," says Levitt.

www.newsweek.com/id/226938

[No Elephants]

151. So is Barney Frank.

It's funny, though, because it was the financial advisor to the 2008 McCain campaign who fought hardest to repeal Glass Steagall, when he was in Congress. You know, the one McCain finally fired for saying Americans should stop whining about the economy. Former Senator Gramm. And I think McCain did not even bother to vote on the repeal.

http://thestrangedeathofliberalamerica.com/bill-clinton-glass-steagall-and-the-current-financial-and-mortgage-crisis-part-two-of-an-indepth-investigative-report.html/comment-page-1

[Enthusiast]

176. And Barney is wrong.

Senator Dorgan: http://www.youtube.com/watch?v=veAOoQEy0PI

[Enthusiast]

175. Obama and Geithner are wrong!

The firewall must be restored! Dorgan http://www.youtube.com/watch?v=veAOoQEy0PI

[Goldstein1984]

6. I left the Democratic Party and became an Independent when

Clinton signed legislation repealing Glass-Steagall Act.

This is a no-brainer.

But I too will believe it when I see it.

We should all keep pressure on our legislators.

[perdita9]

38. Public Pressure

I agree, the only way this will pass is if we make them do it. Organize, organize, organize. Who will lead the charge? I'll be happy to take my place in the mob with a pitchfork in one hand and a torch in the other.

[Goldstein1984]

40. Welcome to DU

I'm about two weeks new here, myself.

Be careful of the "mob and pitchfork" stuff on DU. There is a large anti-dissent and work-within-the-system contingent in DU. You might find yourself lumped with the Teabaggers. That, and accusations of whining, and the standard methods of invalidating an argument on DU.

Here's what I'm doing:

I've cut my spending to the bone.

I've increased my donations to NGOs, with attached correspondence saying, "This donation is intended for..."

I'm keeping the calls and emails flowing to my representatives and the White House. (Almost daily)

I'm commenting everywhere on the Internet I think it makes a difference.

I'm using Twitter, my Facebook page, and emails to contacts to spread the word.

And I, too, am available for activism beyond this when a progressive leader is willing to stick their neck out and organize those of us Left of the Mainstream.

(Living in Alaska, it's difficult to hop in a car and join in the nearest march, but I'm saving my vacation in 2010 for one that looks like it could make a difference.)

[Iowa]

53. Well said Goldstein1984...

"Be careful of the "mob and pitchfork" stuff on DU. There is a large anti-dissent and work-within-the-system contingent in DU. You might find yourself lumped with the Teabaggers. That, and accusations of whining, and the standard methods of invalidating an argument on DU."

I agree. These folks seem to come from two camps:
--those who are willing to support the party, no matter how far rightward it moves, because the alternative is worse
--those who are tuned into the cult of personality... these folks have a natural tendency to align with management/power

Fortunately their numbers seem to be dwindling.

I, too, changed my registration to no-party. Obama's long list of breath-taking sell-outs was the final straw for me. Policy is all that matters. I didn't support Republicans in the 60s, and I see no reason to support them today, no matter what brand-name they may have co-opted. If they get behind progressive policies, I support them. If they sell-out or compromise on core principles, they can go to hell.

[sabrina 1]

75. I would add to that list

Tear up credit cards. They support the corrupt major banking system.
Donate to the ACLU instead of the DNC.
Take money out of major banks and look for a good credit union.
Never donate to political pacs where you can't control who the money goes to.


I like your list and good for you for spreading the word. I have been doing that also. This morning I helped two elderly relatives cancel their American Express cards. They were confused by all the literature explaining all the rules etc. and although they both have excellent credit ratings, one late payment, which is easy to make for someone in their eighties, would get them huge penalties.

And, no one makes excuses for old or infirm or disabled people at these mega banks. These two people were used to the way things were, where your bank knew you and would not impose penalties for someone in their 80s who was a day late with payment. Since they make no excuses, neither should we.

The bank rep asked them why they were canceling their account, and I was so proud to hear them say 'your fees are extortionary and even though they have not affected us yet, I just don't like your way of doing business'.

[PSzymeczek]

137. Mine all lapsed

'cause I owe, in toto, about $40K-$50K.

[clixtox]

163. Good for you!

I wish you could have managed to owe a whole lot more...

[alp227]

78. Keep doing the right thing Goldstein!

I see how frustrated you are with the way the supposedly progressive Democratic Party is going. Since Clinton began square dancing with the GOP back in his terms, the Democrats have been cowardly submissive to the rival party. When I registered to vote right before the summer, I picked "decline to state".

[Chulanowa]

56. Why settle for a torch and pitchfork...

When you can have both with the new all-in-one torch-fork from RONCO! Simply attatch any commercial propane tank to the reservoir directly beneath the comfort-gripped handle, press the "ignite" button, and you will have jets of flame shooting from the tines of your torchfork in no time! Adjustable settings alllow for everything from roasting your potatoes AS YOU HARVEST THEM, to spewing hte flames of hell against the tender skin of unpopular politicians.

The torchfork, latest in mob violence technology! From RONCO! (As seen as TV!) If you order now, we'll throw in this box of tar-matoes! Never again divide your attention between throwing rancid tomatoes and dunking a bastard in tar! Get both ion one with the tar-mato (feathers sold separately).

[Goldstein1984]

69. That Ron Popeil!

What will he come up next?

Still lovin' my Pocket Fisherman and Veg-o-matic!

[OttavaKarhu]

125. What about the Buttoneer and Cap Snaffler?

Can't live without 'em, though not sure they were Popeil....

[Jackpine Radical]

90. Beautiful stuff.

I wish I had written that.

[No Elephants]

153. You do not have to be careful about what you post. Yes, there is a large

contingent at DU who thinks one way, but there is an equally large contingent who disagrees with them. And others who stay out of arguing. So, whatever you post, you will have some detractors and some supporters and some relatively silent.

If you can't express your political opinion on a political message board, what's the point of posting there?

At least, that is my opinion.

[swilton]

100. +1

[Hulk]

101. Could do that...but would always be ANTI-repuke....

Might do that...but it just takes effort to go down and sign a card. I'll always be a progressive/liberal, so if that's a Democrat..then that's what I am. If it's a new party...then that's what I'll be.

Progressive first....Democrat most likely.

[Capn Sunshine]

116. The easy end to all this crap: Campaign Finance Reform

public finance , Canada style. That will kill off the beast.

[No Elephants]

154. Disagee that it is easy; disagree that it would kill the beast.

How likely is Congress to cut off its own supply of campaign financing and other perks, not to mention its own source of cushy jobs when "public service" ends? And, even if Congress would do that, Cases in the SCOTUS, especially the Roberts Court, indicate that the SCOTUS may well declare the laws unconstitutional. And, if that did not happen, the beggers would find one or more loopholes, just as they did with "soft money."

[OttavaKarhu]

129. Same here, and I don't see this passing either

Even if it does it's a bit like closing the barn a century after all the horses have left, run, died, and are nothing but chunks of bone.

I'd like to feel good about this, but my political marrow senses that Sen. Cantwell is looking ahead to 2013, when she is up for re-election. The atmosphere here in Cascadia is increasingly independent. Look at Brian Baird's decision not to run again, knowing that he will not be re-elected by his many constituents who have not forgotten how he blew off our demands that he vote against bailouts.

We haven't forgotten how she voted, either. So this sudden love of Glass-Steagall is more than a bit suspect.

The political hay of tomorrow will be cut from the turf where Independents graze.

As the Sage of Baltimore observed:

"Under democracy, one party always devotes its chief energies to trying to prove that
the other party is unfit to rule -and both commonly succeed, and are right."

[Enthusiast]

174. I remember being angry

about it at the time. Geesh, now years later, I understand why I was angry.

http://www.youtube.com/watch?v=veAOoQEy0PI Dorgan!

[earcandle]

7. What is so hard about putting our laws and regulations back in effect and prosecuting those who

dismantled them?  Do it so we are at least in agreement with
our own rule of law.  

[Donnachaidh]

10. prosecute Grassley? I want a front row seat for THAT happening.

I'd love it - but he'll be protected.

[WhoIsNumberNone]

23. The hard part is overcoming the resistance of those in the government-

who are controlled by the groups who have a vested interest in seeing that things don't change.

[earcandle]

141. YOu are talking about people committing crimes when you talk about "vested Interest" Take off the

blinders.  There is no excuse, even wealth, or investors, or
jobs, or somebody gets some income.. there is no excuse but
nepotism... which is criminal in effect and in cause.


Bring them down.  They are but a few.  Find them, isolate
them, and restrain them, much like they are now doing to
special education children.  Think of them as "special
education adults" who need to be re-grooveyed.


Don't let criminals get away just because they are wealthy. 
Take that fucking wealth away from those asshats in fines and
settlements and then jail them.  We must.  Those varmits wreak
havok over and over all the time, throughout history and they
have no standing at all but to be part of a group of thieves
stealing the money of the people and murdering them right and
left.

Grab those suckers every chance you get and hold them.  And
then gather evidence and call in the judge and off they go. 
We cannot fear this idiots.  They are far too stupid to keep
up if you dare to wake up. 

Wake up.  Wake up.  Use your intelligence!


I am not talking just to myself here.  I am talking to all of
you, too.

[OHdem10]

8. "The impact on Wall Street would be severe..." Wall St. would no longer

have the taxpayers money to gamble away.

[Ernesto]

9. works for me

[elleng]

18. GOOD!

About Time!

[No Elephants]

156. Not only taxpayer money. Before they got bailed out, they had sucked the money

from investors, like my neighbors and their pension plans. Only after they blew through that did they get taxpayer money.

And even shows on PBS have for years been dedicated to persuading more and more of us invest in the stock market.

[Tutankhamun]

11. It would be awesome if this passed. I can't believe McCain co-authored it.

There must be a catch here -- like a behind-the-scenes deal in which it's been agreed that this will never actually pass. I can't believe this is for real.

[valerief]

14. Excellent point. nt

[laughingliberal]

27. You're missing the big point here. Cantwell is siding with McCAIN!!!

She must want Palin for president!!!!:sarcasm:

We can hope this is a return to his younger, more moderate days like when he worked for campaign finance reform.

[jmowreader]

126. Not a good example

McCain worked for campaign finance reform after he got caught with his hand in Charles Keating's cookie jar.

[Enthusiast]

80. I suspect McCain

will use this to expose Democrats that have banking interests at heart. Not that this is a noble act on McCain's part.

McCain doesn't do noble. He is still angry over losing the election to a black man.

[change_notfinetuning]

89. I go along with your theory. Wants to see the Dems tripping over each other

to get this killed. I hope I'm wrong and there is bipartisan support. It should be a no-brainer, but Wall Street and the Dems are an item.

[laughingliberal]

114. And if it should shine a light on some of the corporate Dems perhaps they will have to locate those

working class values they seem to have misplaced since taking back the majorities in '06. If not, well, they were never really on our side to begin with, huh?

[No Elephants]

157. Please see Reply # 151. IMO, McCain knows that it will not pass and is just

trying to show up those Democrats who will work to defeat it. Not that I mind having them shown up, but McCain is a skank.

[Enthusiast]

177. I agree. Fuck McCain.

That said, I will still not vote for nor support a Democrat that is against restoring Glass Steagall.

[Owl]

12. GOOD!!!!!!!!!!!

[No Elephants]

13. Just do it.

[Strelnikov_]

15. Gramm (R) Leach (R) Bliley (R) n/t

[Ruby the Liberal]

93. Rubin (D) Clinton (D)

Need I look up the UTube where Clinton is telling them to call it the Harding Coolidge Hoover bill for all he cares, just "pass it".

This POS bill was a Bob Rubin/Larry Summers deal.

I'll believe it passes administration muster when I see it.

[OnceUponTimeOnTheNet]

112. To be fair, I think it was veto proof. Passed 90 to 8 in the 106th Congress.

Nays
Feingold
Boxer
Bryan
Dorgan
Harkin
Wellstone
Shelby (R) AL
Mikulski

Not Voting
McCain

Present
Fitzgerald IL

[No Elephants]

158. Maybe it wouldn't have been veto proof if Clinton had opposed it, instead of urging its passage.

passage?

And to whom are you trying to be fair? The American people who lost their pension funds and then also had to bail out the guys who gambled those funds away on crap derivatives? Or to Gramm and friends? Or to the champion of repeal of Glass Steagall and NAFTA? Or both? And why?

At some point, it has to be about principles and the American people, not only about which letter a politician chooses to put after his or her name, which choice seems to get less significant all the time. Please see Replies 95 and 162.

[12string]

16. Wall Street

needs to be impacted severely.

[aquart]

17. What is this? A vision of sugarplums? Don't "see" it, DO IT!

I remember screaming when I heard about the repeal. I remember yelling that horrible things would happen.

Are derivatives illegal yet? Is bundling debt illegal yet? I don't want to hear a word from Congress or Wall Street until they are.

[defendandprotect]

34. +1

:)

[marginlized]

19. Glass-Steagall worked fine for nearly 70 years.

10 years without it and see where we are.

[KansDem]

71. Notice how the article is written?

"Turning the clock back 10 years" Yeah, right, like we're "going backwards." That's not "progress," right? I wonder if the "average" American will now go running around screaming, "We're 'going backwards!"

edited for clarity

[alp227]

79. 10 years ago, we were so better off.

I mean, business was booming, and the government actually had a budget surplus. Yeah I think that the "turning back the clock" phrase is a bit misleading.

[Enthusiast]

179. Glad you recognized the obfuscation.

We are being bombarded by it every moment.

Returning to regulation that protected the country for all those years is progressive. That is all. Fuck Wall Street.

[Enthusiast]

82. Excellent point.

Glass-Steagall was repealed so the big money interests could loot the country the way they did.

[bfarq]

109. First they looted S&Ls. Then the looted

the Pentagon budget with all the no-bid contracts in support of the wars.

Then they went for the big score, creating the mother of all bailouts that effectively took $3 trillion from average Americans, saddling us with that debt basically forever.

Not much oil left in that well, so let's close it up and move on. The next big looting is in the health insurance scam they are in the process of passing, where taxpayers are left holding the bag for another couple trillion dollars of obligations. And after they get the good money out of that, maybe they will be OK with real reform of the health insurance business because their crime spree will have moved on to another industry.

Meanwhile, if you have any savings, it is bound to be sucked up with the hyper-inflation that lies ahead. And if you don't have any savings, you are still stuck with how to fund all these obligations (which is to see all the IOUs left by the looters). And that means a lot more taxes in the future.

[madrchsod]

20. huge step in the right direction

but i bet it will be knee-capped....

[lsewpershad]

21. About time

these clowns do something right for a change.

[Lydia Leftcoast]

22. YESSSS!

This would be a great first step in restoring the left's trust of the Obama administration, you know, actually doing something that doesn't benefit the corporate elite?

[Enthusiast]

83. If the restoration

actually has teeth and is not some watered down version. Besides, Rahm might tell Obama to veto it.

[No Elephants]

159. Please see Reply # 150.

[Mari333]

24. please please let this happen

[Angry Dragon]

25. This is something that I can stand behind

Time will tell if it passes

[WriteDown]

26. So should McCain have been POTUS?

It gets more confusing everyday. Oh well. Hope the bill has a future.

[Enthusiast]

87. McCain's chief campaign adviser

wrote the bill that did away with Glass-Steagall. The Gramm-Leach-Bliley Act.

Phil Gramm. Remember that goofy looking fucker? Like LIEberman, he resembles a living cartoon character. He told McCain to say "The fundamentals of the economy are sound." the day of the biggest stock market crash in history. I hardy think McCain has demonstrated sound judgment-Bomb bomb bomb Iran. Come on.

[No Elephants]

160. Only in your dreams. Please see Reply #151 and all the responses to Reply # 11.

[Grown2Hate]

28. Simple. Brilliant. Powerful. OVERDUE. NT

[ck4829]

29. They make this sound like it would be a bad thing

[Skink]

30. The Big Zero

By PAUL KRUGMAN

Published: December 27, 2009
Maybe we knew, at some unconscious, instinctive level, that it would be an era best forgotten. Whatever the reason, we got through the first decade of the new millennium without ever agreeing on what to call it. The aughts? The naughties? Whatever. (Yes, I know that strictly speaking the millennium didn’t begin until 2001. Do we really care?)

But from an economic point of view, I’d suggest that we call the decade past the Big Zero. It was a decade in which nothing good happened, and none of the optimistic things we were supposed to believe turned out to be true.

It was a decade with basically zero job creation. O.K., the headline employment number for December 2009 will be slightly higher than that for December 1999, but only slightly. And private-sector employment has actually declined — the first decade on record in which that happened.

It was a decade with zero economic gains for the typical family. Actually, even at the height of the alleged “Bush boom,” in 2007, median household income adjusted for inflation was lower than it had been in 1999. And you know what happened next.

It was a decade of zero gains for homeowners, even if they bought early: right now housing prices, adjusted for inflation, are roughly back to where they were at the beginning of the decade. And for those who bought in the decade’s middle years — when all the serious people ridiculed warnings that housing prices made no sense, that we were in the middle of a gigantic bubble — well, I feel your pain. Almost a quarter of all mortgages in America, and 45 percent of mortgages in Florida, are underwater, with owners owing more than their houses are worth.

Last and least for most Americans — but a big deal for retirement accounts, not to mention the talking heads on financial TV — it was a decade of zero gains for stocks, even without taking inflation into account. Remember the excitement when the Dow first topped 10,000, and best-selling books like “Dow 36,000” predicted that the good times would just keep rolling? Well, that was back in 1999. Last week the market closed at 10,520.

So there was a whole lot of nothing going on in measures of economic progress or success. Funny how that happened.

For as the decade began, there was an overwhelming sense of economic triumphalism in America’s business and political establishments, a belief that we — more than anyone else in the world — knew what we were doing.

Let me quote from a speech that Lawrence Summers, then deputy Treasury secretary (and now the Obama administration’s top economist), gave in 1999. “If you ask why the American financial system succeeds,” he said, “at least my reading of the history would be that there is no innovation more important than that of generally accepted accounting principles: it means that every investor gets to see information presented on a comparable basis; that there is discipline on company managements in the way they report and monitor their activities.” And he went on to declare that there is “an ongoing process that really is what makes our capital market work and work as stably as it does.”

So here’s what Mr. Summers — and, to be fair, just about everyone in a policy-making position at the time — believed in 1999: America has honest corporate accounting; this lets investors make good decisions, and also forces management to behave responsibly; and the result is a stable, well-functioning financial system.

What percentage of all this turned out to be true? Zero.

What was truly impressive about the decade past, however, was our unwillingness, as a nation, to learn from our mistakes.

Even as the dot-com bubble deflated, credulous bankers and investors began inflating a new bubble in housing. Even after famous, admired companies like Enron and WorldCom were revealed to have been Potemkin corporations with facades built out of creative accounting, analysts and investors believed banks’ claims about their own financial strength and bought into the hype about investments they didn’t understand. Even after triggering a global economic collapse, and having to be rescued at taxpayers’ expense, bankers wasted no time going right back to the culture of giant bonuses and excessive leverage.

Then there are the politicians. Even now, it’s hard to get Democrats, President Obama included, to deliver a full-throated critique of the practices that got us into the mess we’re in. And as for the Republicans: now that their policies of tax cuts and deregulation have led us into an economic quagmire, their prescription for recovery is — tax cuts and deregulation.

So let’s bid a not at all fond farewell to the Big Zero — the decade in which we achieved nothing and learned nothing. Will the next decade be better? Stay tuned. Oh, and happy New Year.

[Uncle Joe]

49. My suggestion would be to call it the

Selected Decade, this being the era; the Supreme Court decided their own narrow political motivations were more important than determining the intent of the American People and everything that followed was a natural, sociological consequence.

As the highest court in the land determined; the American People weren't worthy to decide their own future, the nation lived down to those lowly expectations.

I must take issue with the implication from Krugman's first sentence, the worst thing; the American People could do, would be to forget this era.

[Hekate]

62. Linky please?

[Enthusiast]

88. Critique? Hell, they are

cheerleaders for the status quo.


"Even now, it’s hard to get Democrats, President Obama included, to deliver a full-throated critique of the practices that got us into the mess we’re in."

[Joe Chi Minh]

31. If we didn't know them so well by now, you'd have to marvel at their audacity

in whining about the prospect.

[defendandprotect]

32. Better the "severe" impact on Wall Street than the SEVERE impact on citizens/main street ---

by capitalism which is merely organized crime!!

[pattmarty]

33. Wouldn't it be great if ALL the politicians would get behind this??

.......I wouldn't give a shit if Jim Demint voted for it and Bernie Sanders didn't. As long as IT PASSED. This might even partially make up for the year long disastrous healthcare "reform".

[defendandprotect]

35. Two Repugs seeking to reinstate? McCain/Cantwell? huh?

[Sunnyshine]

67. Senator Cantwell is Democratic. McCaint is only opposing this now cuz his party ain't in charge.

Surely the White House will throw themselves behind this, that is if they want to demonstrate that they are willing to stand shoulder to shoulder with the middle class people, with people who have been advocating for decades in support of the sound policies and progressive changes required to usher in a 21 Century economy that builds sustainable growth.

We are for the advancement of all people and believe in closing the gaps between haves/have nots.

The other party (and DINOs who make it hard to distinguish a difference in parties at times) and their big industry buddies do not want the above to happen because they believe in pure profit. They do not care that it comes from the denigration and destruction of both people and planet. Resources are to be had now- get it while we can.

The U.S. will soon be forced to grow beyond markets built upon insatiable desires and mass consumption.

This bill would be like the biggest public break-up ever!

[defendandprotect]

76. Thank you, wasn't familiar with Cantwell . . . good for her --- but no Dem moved on this first?

The White House should have been moving on this -- and hope you're right about them

now jumping on bandwagon.

I'm still surprised at McCain getting involved!!


Agree -- it would be splendid to get any of this financial stuff moving backwards --

which would be the right direction now!!




:)

Happy Winter Solstice -- Nature's New Year!

[Norrin Radd]

105. Cantwell leans right. She is unloved by progressives in Washington State.

Why I'm shocked she is proposing this.

[defendandprotect]

117. Obviously, '06 and '08 had to have had a message for them . . .

PLUS, evidently only 20% of voters are now identifying as Repug . . . !!!

And, I did read a few months ago that there are some who think Obama had a really

large - unreported -- landslide. And, that perhaps as many as 24 new Dem seats

in House were stolen.

[No Elephants]

161. Please see Reply 151 and all the responses to Reply # 11.

[Wizard777]

36. Do it! Corporate America has pretty much overthrown American Health Care.

If the government doesn't bring those megaliths down to size. They'll over throw the government next. If they haven't all ready. We're headed back to the days when J.P. Morgan pretty much owned the US Government lock, stock, & barrel. That was back when corporate America used bail out the government and the corruption of the Old Boys Network was an institution greater than the government it's self.

[Enthusiast]

95. Corporate America

already has overthrown the government.

[defendandprotect]

118. +1

[OttavaKarhu]

132. Sad to agree, but I do. n/t

[No Elephants]

162. That is my fear--that it is already too late, that my country jumped the shark while

the Demlicans and the Republicrats distracted us with wedge issues, like choice and prayer in schools. And of late, they've even been merging on the wedge issues. Maybe that's bc they no longer need to distract us with them.

http://www.youtube.com/watch?v=MpraJYnbVtE

[Wizard777]

171. That's because the Republicans went Communist big time under Reagan.

I think it was RFK that said when Government controls business. It's Fascism. When Business controls the government. It's Communism. We defeated Communism in the USSR. Now if we could just defeat here in America

[Enthusiast]

172. Incorrect. With all due respect,

under Communism there is no privately owned business. So you have it backwards. Under Communism the State owns and controls all business and property.

Under Fascism business controls government. This is what you see in the U.S. today. There is little Representative government left for 'the people' but there is beau coup representation for business.

I kind of doubt RFK said that at all.

[Wizard777]

193. I may have it backwards. But it is from an RFK speech or paper.

I've found the quote "While communism is the control of business by government, fascism is the control of government by business." That's RFK Jr. But I think it's something he has taken from his father. The searches I do on RFK turn up many results for Jr. and very little on Sr.

[OttavaKarhu]

131. The present pathetic "health reform" is the new boom

Dunno whether you read much financial news, but there are a whole lot of damp Jockeys out there over the prospect of everyone being forced to consume corporate health care services.

The "investment opportunities" in information management (i.e., everybody's private health records), pharmaceuticals, and other industries leave uber-capitalists with heaving bodices.

They have already overthrown the government. They're using the government to force us to buy their products.

[scentopine]

37. This is a war worth fighting - we need to be careful

or it will end up like some piece of shit reform where we are mandated to save our money in banks run by citibank or goldman sachs and penalized with forcible collection a large fine or a jail term if we don't.

[Enthusiast]

91. End up like the health care bill

you mean? After all the congressional corporate interest boys get done with it.

[scentopine]

142. Exactly. At one time the idea would have been ridiculous.

[jonestonesusa]

39. Bi-partisanship we can support. Hope it happens. n/t

[rpannier]

148. If Mc Cain helps sponsor it then we have 2 republikkans

Which offset Ben Nelson and Joe Lieberman

[yurbud]

41. it's about time! They should have put this bill in front of Bush, just to force him to veto it.

[optimator]

42. hahaha yeah right

There is ZERO chance of this actually happening.

[Andy823]

43. Contact congress now!

Let your elected members of congress know that this is what main street wants, especially let Dodd know since he doesn't sound very interested in this. If he is representing you in congress let him know it's time for change, and if he doesn't do something to get that change, he could be voted out of office! Cantwell is senator and I am glad she is working for change with the other side. Even republicans are going to have to take a side on things like this since election time is coming up. So no matter what party your elected members of congress are in, let them know how you feel!

[dana_b]

44. the best "hopeful" news

I've heard all wekk (or longer)! Please, please come true!

[AllyCat]

45. The banksters won't give up their new power. I'll believe this when I see it

Don't get me wrong...it is a huge step in the right direction. That is exactly why they will fight this with everything they have. And they have more than we do: more money, more voice, and more politicians in their back pockets.

[madokie]

46. I'd like to know what he thinks the present system is doing to mainstreet

and the dumb sob can't figure out without main street there will be no wall street. he's a stoooooooooooooopid man

[change_notfinetuning]

47. Over Rahm's dead body. Never happen while he's in charge. n/t

[Vidar]

68. That would make it a thousand times sweeter.

[coyote]

73. I am with you 100%

This will NEVER happen is Rahm is there.

It's just more false hope.

[No Elephants]

164. Rahm's control of Obama is a myth/meme.

[Hatchling]

196. All Myths have a grain of Truth within.

Perhaps heavily influenced would be a better way of saying it?

[tclambert]

50. Yes! Yes! Yes! Go! Go! Go!

Over on the Stock Market Watch thread, they ask for this almost every day.

[DailyGrind51]

51. I want my deposits to be applied to loans for my neighbors, not for bizarre investment schemes!

[varelse]

52. I look forward to seeing more leadership from our Executive branch in this war

it's one we absolutely have to win if we want to survive as a superpower - or even as a free nation.

[clear eye]

54. Could they? Actually?

Be still my heart.

[progressoid]

55. Riiiiight. I'll believe it when I see it.

[PatrynXX]

57. Banks have been out of control for uh since the Repukes started taking over.

Once upon a time debit cards would be denied if something went over. Now it's a good way to get a $200 overdraft. or worse. Hate banks. Not the people who run them. All the merging messed things up.

Like I loved Union Planters Bank, then it was Regions.. then AmSouth bought them but kept Regions and it's sucked ever since. Everything they do has to be done with paper. Less efficient and the people who work for them don't like it because it's more work for them. Pulling ATM's out of many places because people don't stick a deposit slip in with the deposit. Hello!!! up until 1-2 years ago I didn't need a deposit slip with the atm. why have an atm with a deposit slip. o_O

[Paper Roses]

58. S have become so negative these last few years. I bet....

This will never happen.

[Hekate]

59. “The impact on Wall Street would be severe”. Oh, please let it be, for all our sakes. nt

[burning rain]

60. Gonna take a big push to make it happen....

as opposed to a bill long on appearance but short on substance, like the credit card bill.

[LiberalFighter]

61. They need to add two sentences to the legislation.

Any finance institution that lobbies against this legislation in any form will be required to have all of their officers castrated.

Any officer that operates primarily through their headquarters must be castrated to maintain their position.

[No Elephants]

165. I take it you are assuming that all officers are males?

[MilesColtrane]

63. H.R. 4375 the 'Glass-Steagall Restoration Act' has been in committee since the 16th.

Look here to see if you have a representative on the Financial Services Committee.


http://financialservices.house.gov/members.html


If you do, please write and ask them to recommend this bill.

If you don't, please write chairman Barney Frank and ask him to get this bill to the floor of the House.

[Enthusiast]

99. I wrote. nt

[MilesColtrane]

104. Thanks.

Our voices may not hold much sway compared to lobbyists, but Congress should at least know that there are those of us how give a damn about issues like this.

[No Elephants]

166. According to Barney Frank, Glass Steagall is outdated. He claims to believe

that some form of regulation is needed, but Glass Steagall isn't it.

In other news, Barney Frank was also shocked, shocked to learn that giving credit card issuers nine months before regulations were strengthened would allow them to raise rates and change their policies before they got frozen. http://www.boston.com/business/personalfinance/articles/2009/11/06/credit_card_firms_hurry_to_raise_rates/

Barney's a hoot these days.

[Bolo Boffin]

64. Ohhhh, the impact on Wall Street would be severe.

It's breaking my heart.

[Djarun]

65. Sign me up for the war!!!!!!!!!!

[Jefferson23]

66. This better damn well happen. n/t

[davidwparker]

70. Yes, time to undo the Graham/Clinton mistake.

:applause:

[davidwparker]

72. "Bank of America Corp.’s acquisition of Merrill Lynch & Co" - Ah. This

explain it.

I paid my mortgage earlier today so that I could claim more mortgage interest for this year. The website mentioned that was driven by Merrill Lynch and I thought that was odd. Now I see.

This restoration would be good for main street.

[HippieCowgirl]

74. It's about damned time (nt)

[Little Star]

77. Please let this happen.

[Enthusiast]

81. This is

change I can believe in. That is all.

[No Elephants]

167. McCain's introducing a bill is change you can believe in?

[Enthusiast]

178. No, fuck McCain and

fuck Phil Gramm. The bill's introduction has nothing to do with it. The bill has merit. Glass-Steagall should be restored even if McCain introduced the bill to embarrass the administration.

This is also why he pushed for drug reimportation. McCain is filthy.

[destes]

84. Perhaps at last the powers that be have decided.....

....that enough's enough. Looks to me as if McCain has been told to close the profit gate on this latest "business cycle". They almost did it this time though. They almost killed the golden egg laying goose. (you didn't really think that 401-K increase was yours to keep, did you?)

Or at least stirred it up enough to suspect that "nihilism may be afoot". "What's next, trade unions? Get McCain and have him call off the orgy, stat", though hardly one of them knew what "stat" meant the end of the orgy brought tears to many an eye.

[CoffeeCat]

86. Wall Street reform...like the healthcare reform we just got?

Great.

This will start out as a bill to reinstate Glass Steagall. Then, the lobbyists from the banking industry
will swoop down and have their little meetings with the White House. Then--we'll all be mandated to purchase derivatives,
invest 10 percent of our gross income in the stock market and own at least 23 credit cards.

:sarcasm:

[Thickasabrick]

122. I feel the same way. If they could actually do this - it would go a long

way in garnering some respect back for this administration.

[naaman fletcher]

94. Good. If they are too big to fail they should be small and not interconnected.

[highplainsdem]

96. Long overdue.

[skyounkin]

97. I WON'T believe it when I see it

I'll believe it when it's ENFORCED.

[Hulk]

98. Line up all you shills and repuke carpetbaggers!

This will be another bright light on just who is bought off by the corporate powers...as if we needed more proof.

[Chisox08]

103. I hope this happens

I'm just worried it will go the way of the health insurance companies bailout.

[edc]

106. 41 Senate Nays

is all it takes to kill any bill in Congress.

[williesgirl]

107. Please, please - all of us have to help make this happen. rec'd

[Joanne98]

108. Lieberman will save them!

[silenttigersong]

110. Vote

Why did McCain not vote against the Repeal of Glass Stegal?This is a polital ploy and he needs to be pressured hard for it.His buddy Phil Gram(also his economic adviser for campaign)the guy who called main street whiners=McCain a hypocrite who played it safe enough games already.McCain why did you not vote?:spank:

[OnceUponTimeOnTheNet]

111. K&R. Thank you for the article Kathleen. I wrote my reps last week

to support this, as well as the White House. Read about it on Feingolds website here.

http://feingold.senate.gov/record.cfm?id=320953

I've heard back from Stupak, but no one else so far. Levin voted for it back in 1999, and I chastised him for that YEA vote.

[grahamhgreen]

120. Thank god!

[No Elephants]

168. Not sure God had much to do with this--or wanted to. From what I read, He hates deception.

[rasputin1952]

121. Like I care what moneychangers and speculators think...

perhaps if they could simmer down their greed, or maybe have to use a shovel for a while, I might be able to conjure up some sympathy for them...on second thought,unless they hit the street and clothed the freezing, fed the hungry and got the sick the attention they need...then again, I still could not muster a tear for them.

[louis c]

123. Imagine that. FDR, had it right

[muntrv]

124. At the signing ceremony, Obama should bitch slap Gramm, Leach & Bliley.

[OttavaKarhu]

134. And then the 84% of Senate Dems/75% of House Dems who voted for it

[StreetKnowledge]

127. About fuckin' time.

WE need to start winning. US.

[jmowreader]

130. Yes, Mr. Abernathy, the impact would be severe

It's critical that it happen, though. Allowing firms to combine retail banking, investment banking and insurance has been a factor in two major depressions--the Great Depression of the late 1920s-early 1930s, and the "recession" of the early 21st Century. It must never happen again. After the three businesses are split up, which will ultimately mean more financial-sector jobs because there will be more companies in the financial industry, someone needs to round up Phil Gramm, Jim Leach and Thomas Bliley and hang them by the testicles in front of the Federal Reserve Board building as a warning to the others.

[ozone_man]

133. Very few wars are justified.

But in this case, it is not only justified, but essential to fixing a grave error by Clinton that led to our present economic depression/recession.

[EndElectoral]

135. Resurrecting Glass-Steagall should have been one of the first things done.

[depakid]

136. If Democrats want to reclaim the iniative and fair reasonably well in 2010

as opposed to being royally thumped- this would be the way to do do it.

[Loudmxr]

138. Plant a stake in the heart of Phil Gramm's plan to destroy America.

[No Elephants]

169. Phil sure had a lot of support from Democrats for that plan.

[scentopine]

140. No punishment is too severe for these traitorous bastards -nt

[TomCADem]

143. "McCain guru linked to subprime crisis" - Repeal Glass-Steagall, But Don't Trust McCain!

John McCain's recently celebrated support of reinstating Glass-Steagall is about as strong as his previously stated support for cap and trade legislation. Indeed, McCain's sudden support for financial regulations may have something to do with his surprisingly tough battle to win the GOP primary in his state. Perhaps, Senator McCain is trying to put some distance between himself and his tight relationship and support of Phil Gramm.

So, I absolutely support pushing for the reinstatement of Glass-Steagall. However, DO NOT TRUST MCCAIN on this! Phil Gramm was John McCain's economic brain as late as last year.

http://www.politico.com/news/stories/0308/9246.html

McCain guru linked to subprime crisis

The general co-chairman of John McCain’s presidential campaign, former Sen. Phil Gramm (R-Texas), led the charge in 1999 to repeal a Depression-era banking regulation law that Democrat Barack Obama claimed on Thursday contributed significantly to today’s economic turmoil.

“A regulatory structure set up for banks in the 1930s needed to change because the nature of business had changed,” the Illinois senator running for president said in a New York economic speech. “But by the time was repealed in 1999, the $300 million lobbying effort that drove deregulation was more about facilitating mergers than creating an efficient regulatory framework.”

Gramm’s role in the swift and dramatic recent restructuring of the nation’s investment houses and practices didn’t stop there.

A year after the Gramm-Leach-Bliley Act repealed the old regulations, Swiss Bank UBS gobbled up brokerage house Paine Weber. Two years later, Gramm settled in as a vice chairman of UBS’s new investment banking arm.

Later, he became a major player in its government affairs operation. According to federal lobbying disclosure records, Gramm lobbied Congress, the Federal Reserve and the Treasury Department about banking and mortgage issues in 2005 and 2006.

During those years, the mortgage industry pressed Congress to roll back strong state rules that sought to stem the rise of predatory tactics used by lenders and brokers to place homeowners in high-cost mortgages.

For his work, Gramm and two other lobbyists collected $750,000 in fees from UBS’s American subsidiary. In the past year, UBS has written down more than $18 billion in exposure to subprime loans and other risky securities and is considering cutting as many as 8,000 jobs.

[Odin2005]

144. Good.

[4dsc]

145. I'll believe when I see it

until then I don't believe congress is up to the task..

[New Dawn]

146. Note that it only says, "sections of" Glass-Steagall Act.

[MisterK]

147. Im all for it.

Enough of Wall Street raping America LEGALLY

[Solly Mack]

149. K&R

We'll see.

[Quantess]

155. Sounds too good to be true.

But, we'll see.

[tomp]

180. horse gone, close barn door. nt

[sendero]

181. This abolutely should happen...

.... but given this administration's track record with any meaningful reform, I give it a 10% chance of actually happening.

My attitude towards this bunch would take a huge uptick if it did though.

[Vinnie From Indy]

182. LOL

Anyone that thinks that the masters of the universe on Wall Street are going to allow THEIR servants in Washington to upset their apple cart are dreaming.

Don't be at all surprised if this new proposed legislation ends up mandating that Americans buy securities and other financial products from Wall Street firms or face a fine that will be imposed by the IRS.

[INdemo]

184. Write this down..That bill will not pass after the banking

lobbyists make their rounds in Congress this bill will not make it out of committee.. its like the healthcare bill in the beginning..And we know how that is turning out..

[nvme]

186. k&R

[jschurchin]

187. Get ready for the fight.

The banking lobby will be dumping millions of dollars into the laps of the 435 scumbags in D.C., to ensure that Glass-Steagall never sees the light of day. Mark my words, the useless fucks, and I mean all of them, Democrats and Republicans alike, will never bring this legislation back to the floor.

The lobbyist's control Washington, and anyone who believes otherwise is a idiot.

[theFrankFactor]

188. Flowers and Chocolates After the Fist Fu*king-Damage Control

War on Wall Street as Congress Sees Returning to Glass-Steagall
By Alison Vekshin and James Sterngold


Dec. 28 (Bloomberg) -- A one-page proposal gaining traction in Congress could turn back the clock on Wall Street 10 years, forcing the breakup of banks, including Citigroup Inc.

Lawmakers in both parties, seeking to prevent future financial crises while soothing public anger over bailouts and bonuses, are turning to an approach that’s both simple and transformative: re-imposing sections of the 1933 Glass-Steagall Act that separated commercial and investment banking.

Those walls came down with passage of the Gramm-Leach- Bliley Act of 1999. A proposal to reconstruct them, made by U.S. Senators John McCain and Maria Cantwell on Dec. 16, would prevent deposit-taking banks from underwriting securities, engaging in proprietary trading, selling insurance or owning retail brokerages. The bill could also force the unwinding of deals consummated during the financial crisis, including Bank of America Corp.’s acquisition of Merrill Lynch & Co.

Gimme a break! So now there has been a change of "heart"? Bullshit. This is phase two; the sob story after the rape. Fuck them! These people are ruled at the top by SHIT. Until the shit is removed we get shit on a fucking shingle... wrapped with a bow or with some roses but SHIT!

Already, so many forget the abject FAILURE the Democrats were during the Bush years and expect some grand change of "heart" after what?... They barely pass the single biggest embarrassment of a "health care" bill among the worlds civilized nations? And THAT with a majority in both houses and a "Democrat" President?

If Liberals are smart they will organize outside of all established media and establishment propaganda and look at the facts and the ACTIONS over the last two decades. This is the most arrogant corporate FUCK JOB to date!

Serious regulation? Really? Why? Because all of the sudden Congress gives a rat fuck what YOU think?

PLEASE!!

[Strelnikov_]

197. Still a classic

http://www.youtube.com/watch?v=23XFP6Vdgvk&feature=player_embedded

[stubtoe]

190. Good. Glass-Steagall is exactly what's needed.

The fundamental changes to the economic system that could prevent implosions, like the one we just went through, have yet to be made. This would be a good start.

[dhpgetsit]

192. It is the purpose of our government to limit capitalism.

If Congress cannot "Regulate Interstate Commerce" they are violating their oath to suport and defend the Constitution.

It's just that simple.

[Vermontgrown]

195. Congress and the senate will end up baccking down.

They're way to corrupt to do anything to wall street. They have a majority in the house and senate and can't even pass a decent health care bill. I have no faith in hese corrupt assholes.

[wordpix]

199. Elections of '10 and '12 loom & even the stupidest know most of the country's united on this one

issue, if nothing else. Let these idiots do nothing when Glass-Stegall is reintroduced, and see how their constituents respond.