Does the Obama Admin New Financial Regs Bring Back the Glass-Steagall Act of 1933?

[keep_it_real]

Is it possible to re-instate the Glass-Steagall Act of 1933? And if so, what would be the effect on the current financial system?

[DJ13]

1. Sadly, no

Obama's economic team was involved in eliminating Glass-Steagall in the Clinton admin., they are in the pockets of the financial institutions, so the furthest they wanted to go was to slap minor restrictions onto the existing deregulated environment instead of just reinstituting the regulations that were known to work for 60 years.

[rockymountaindem]

2. Exactly

Obama is doing well in some areas, but his financial regulatory crew is/was part of the problem, not the solution.

[truedelphi]

3. Your response is right on target.

A Mr Herz was on C Span last night to talk among other things about the financial situation.

Someone asked him if he could discuss how bringing Glass Steagall back might help. Was it possible?

Apparently the guy doesn't know! He claimed that "as I am not an attorney" ... he couldn't participate in the discussion.

Meanwhile on June 3rd A Mr Hoenig of the Fed Reserve, did discuss in prepared remarks that Glass Steagall should be re-instated and he also pointed out that that Act and the other regulations of that time were simple to read and understand. He seemed rather insistent that they simply become re-enacted and we get onwith it.

However as O's team is all about the Wall St fraudsters, I doubt it will happen.

[nashville_brook]

8. +1

[niceypoo]

10. By the time Clinton was president Glass Steagall had been rendered toothless

The http://www.answers.com/topic/depository-institutions-deregulation-and-monetary-control-act">Depository Institutions Deregulation and Monetary Control Act rendered it moot.

[Better Believe It]

4. No

[MarjorieG]

5. Obama's team want regs more than Congress, which has to pass them.

I'd put more blame on having to thread the needle to get the minimum, a good start, take care of the most urgent needs.

Too easy to blame Geithner, who has to resurrect a financial framework, as well.

Many say, like my hubby who has covered business and knows you can't trust them, that too much has left the genie's bottle to pretend that complexity and all the games could be shut down. We also caused a lot globally, which still trades in the worst of it.

[dgibby]

6. Of course not. It worked. n/t.

[FrenchieCat]

7. I believe that what has been proposed is only the first set of regulations.....

and that some more are coming down the pike in December after a panel comes back with a report on the Financial Crisis; how it happened, etc....

That's my understanding.

look under SUMMARY OF RECOMMENDATIONS
read in particular 5 thru 7....and sec. C and D
http://www.streetinsider.com/Economic+Data/Obama+Lays+Out+New+Rules+For+U.S.+Financial+System/4737855.html

[niceypoo]

9. We dont need the Glass-Steagall act of 1933

We need a new law with more teeth, 2009