This act was passed in 1933 in the middle of the depression to keep banks from dabbling into the stock market. It was repealed by Clinton and started the financial mess.
Banks used to have only deposits for their short term borrowing. This was protected by the fdic in case they made a bad move. Then, without the regulation of Glass-steagall, all the fancy alphabet stuff came into being. There was no regulation of these and the result was a disaster. Then in 1991, congress gave the Federal reserve the right to bail out security firms-NON BANKS. Are you kidding? We bail out firms that have no govt regulation?
We need the Glass-Steagall act back and tougher than before to cover all the new nonsense.
Maybe i should stand on the street corner with the other occupy people. It makes me so mad that banks have not been punished at all and nothing has changed.
Do you agree with me?
