Today (May 11, 2012) JP Morgan Chase appears to have engaged in the same kind of behavior that lead to the 2008 meltdown and people are talking about reviving the Glass-Steagall Act. I thought I should repost this from March 2009.
Yesterday one of my Random Thoughts was to ask if anyone remember when banks were banks and stock brokers were stock brokers. A few hours later, Rachel Maddow had a piece on the Gramm Leach Bliley Act (GLBA) of 1999. According to the summary of the bill the first provision is
TITLE I — FACILITATING AFFILIATION AMONG BANKS, SECURITIES FIRMS, AND INSURANCE COMPANIES
Repeals the restrictions on banks affiliating with securities firms contained in sections 20 and 32 of the Glass-Steagall Act.
(The GLBA also did some good things like require lending in poor neighborhoods which began to end redlining, but that’s a whole different story and discussion. It also…
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