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Bust Up the Banks; ‘Banking Should Be Boring,’ Says Elizabeth Warren
Cybercast News Service ^ | July 12, 2013 - 10:23 AM | Susan Jones

Posted on 07/13/2013 1:34:07 PM PDT by Olog-hai

Sen. Elizabeth Warren (D-Mass.), alarmed that big banks are getting bigger, says she has a plan to bust them apart.

To prevent another financial crisis, Warren wants to revive portions of the Banking Act of 1933, dubbed Glass-Steagall, a law passed after the Great Depression to separate commercial banking from investment banking. “Banking should be boring,” she told MSNBC’s “Morning Joe” on Friday. …

Warren said her effort to pass a 21st century Glass-Steagall Act has the support of Sens. John McCain (R-Ariz.), Maria Cantwell (D-Wash), and Angus King (I-Maine). …

Why didn’t the separation of commercial and investment banking happen in the Dodd-Frank Wall Street Reform and Consumer Protection Act? Warren was asked. The senator hinted at incrementalism: “Remember, when we adopted Dodd-Frank in 2010, there were a whole lot of moving parts. And there were people who said, ‘Look—we’re putting a lot of new restrictions in place on the financial institutions: let’s get started; let’s get these underway.’” …

(Excerpt) Read more at cnsnews.com ...


TOPICS: Business/Economy; Government; News/Current Events; US: District of Columbia; US: Massachusetts
KEYWORDS: doddfrank; elizabethwarren; fauxcahontas; fauxohontas; glasssteagall; lieawatha; massachusetts; toobigtofail

1 posted on 07/13/2013 1:34:07 PM PDT by Olog-hai
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To: Olog-hai

Thank you, Obi Warren Kenobi. You are our only hope.

http://confoundedinterest.wordpress.com/2013/07/13/glass-steagall-ii-elizabeth-warrens-war-on-banks-fannie-freddie-gm-chrysler-not-mentioned/


2 posted on 07/13/2013 1:37:03 PM PDT by whitedog57
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To: Olog-hai

Why did I know that our boy, little Johnny McCain would be siding with Princess High Cheekbones, the white “woman of color”? The boy just can’t help himself. He’s “reached across the aisle” to the communists so many times that his right arm is 25 feet long.


3 posted on 07/13/2013 1:38:05 PM PDT by FlingWingFlyer (If America is a nation of immigrants, where's my free stuff?)
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To: Olog-hai

....because whenever the government gets involved, everyone benefits! [eyeroll]


4 posted on 07/13/2013 1:38:21 PM PDT by Still Thinking (Freedom is NOT a loophole!)
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To: Olog-hai

one thing missing from all this legislation and regulation, moral fiber. Without a society with a conscience, laws are meaningless.


5 posted on 07/13/2013 1:38:29 PM PDT by griswold3 (Hillary Clinton is Diana Moon Glampers)
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To: Olog-hai
Warren said her effort to pass a 21st century Glass-Steagall Act has the support of Sens. John McCain (R-Ariz.), Maria Cantwell (D-Wash), and Angus King (I-Maine).

What do the Indians think?

6 posted on 07/13/2013 1:39:22 PM PDT by Still Thinking (Freedom is NOT a loophole!)
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To: Olog-hai

Most of the big banks are run by Obama supporting socialists.


7 posted on 07/13/2013 1:39:32 PM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: FlingWingFlyer

Plus he’s trying to make us forget he was one of the Keating Five.


8 posted on 07/13/2013 1:40:43 PM PDT by Still Thinking (Freedom is NOT a loophole!)
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To: Olog-hai

The White Cherokee should just cut to the chase and propose legislation that the government takes over all the banks.


9 posted on 07/13/2013 1:41:16 PM PDT by tips up (Living is easy with eyes closed, misunderstanding all you see.)
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To: Olog-hai

If there should ever be a witch that should be burned at the stake........................................just give me popcorn and a front row seat


10 posted on 07/13/2013 1:43:39 PM PDT by ronnie raygun (Yesterdays conspiracies are todays truths)
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To: Olog-hai
“Banking should be boring,” she told MSNBC’s “Morning Joe” on Friday.

And *you* should have had your syphilis treated in a timely fashion so it wouldn't affect your brain,you phony Indian ,affirmative action whore!

11 posted on 07/13/2013 1:49:06 PM PDT by Gay State Conservative (The Civil Servants Are No Longer Servants...Or Civil.)
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To: Olog-hai

I agree with Warren, but for entirely different reasons. The banks have become “too big to fail.” This is wrong. Banks are private institutions and should not have governments stepping in to bail them out. Usually when governments bail out the private sector, there are strings attached (look at General Motors). What I don’t like about the banks is that they have become casinos that use depositor’s money to gamble on highly risky projects. If they bet wrong, then the government steps in. The depositors lose their money and the managers walk away. (Look at Cyprus).

When I mention “banks,” I also mean investment banks. In earlier times, the investment banks were owned by the partners. They had skin in the game. When the investment banks went public, the partners got rich and just started gambling away with the investor’s money.

And don’t get me started on derivatives...


12 posted on 07/13/2013 1:49:14 PM PDT by Cowboy Bob (Democrats: Robbing Peter to buy Paul's vote.)
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To: Cowboy Bob

I agree with you 100%


13 posted on 07/13/2013 1:51:14 PM PDT by MissH
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To: Olog-hai
Elizbaeth Warren is boring. She should go back to her teepee and disappear from public life. What a total and complete fraud.
14 posted on 07/13/2013 1:51:58 PM PDT by WashingtonSource
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To: Olog-hai

From: Urban dictionary:
http://www.urbandictionary.com/define.php?term=lieawatha&defid=6622917

lieawatha
When some obviously Caucasian woman or girl proclaims some portion of her ancestry as being native American, without proof, and continues to claim such ancestry when her narrative crumbles, and evidence arises that not only is she not what she claimed, but her direct ancestors may have participated in any number of historical actions working against the interests of real American Indians. Further complicated by her ascribing and reporting on federal government forms such minority status, even though there are criminal penalties associated with purposefully misrepresenting such status.

Made even worse when her employers make use of that status to highlight their diversity bonafides, quite possibly denying real American Indian descended but fully qualified applicants from real positions.

After evidence that her family participated in the trail of tears, the candidate for the Senate from Mass. was exposed as a lieawatha. Sadly she did not do the honorable thing and resign from the campaign, or her position at a formerly prestigious east coast school.

15 posted on 07/13/2013 1:52:49 PM PDT by preacher (Communism has only killed 100 million people: Let's give it another chance!)
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To: Olog-hai

The original Glass-Stegal should be restored.


16 posted on 07/13/2013 2:00:06 PM PDT by Zeneta (No eternal reward will forgive us now for wasting the dawn.)
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To: Cowboy Bob

“In earlier times, the investment banks were owned by the partners. They had skin in the game. When the investment banks went public, the partners got rich and just started gambling away with the investor’s money.”

That’s exactly right. They gambled their money and nobody else’s. If it went good, hooray, if it went south THEY suffered. Today, there’s no risk. It’s like sending me to the craps table with your bankroll. If I win, hooray, if I lose, you’re screwed not me.


17 posted on 07/13/2013 2:15:04 PM PDT by Stormdog (A rifle transforms one from subject to Citizen)
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To: Cowboy Bob

CB, you are absolutely right. The TBTF banks should be broken up until they aren’t TBTF. Running a TBTF bank is a license to steal.


18 posted on 07/13/2013 2:15:59 PM PDT by Former Proud Canadian (The IRS--a softer Gestapo)
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To: Olog-hai

Bust up the educational institutions


19 posted on 07/13/2013 2:33:37 PM PDT by Jonty30 (What Islam and secularism have in common is that they are both death cults)
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To: Cowboy Bob
Agreed. Too big to fail, too big to exist. The current system is not capitalism but crony capitalism or "the aristocracy of pull" in Ayn Rand's terminology or "the aristocracy of clout" to put it in Chicago terminology.

Back when repeal of Glass-Steagall was being debated, William Safire understood the problem. "Don't Bank on It" (New York Times, Apr 16, 1998), "Running Huge Risks" (New York Times, Nov 1, 1999)

In 2016 the Republicans should nominate a presidential candidate who will run against crony capitalism. Not a candidate the media can fit right in to the Democrats' narrative of Republicans as robber barons.

20 posted on 07/13/2013 2:34:45 PM PDT by omega4412
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To: tips up
The White Cherokee should just cut to the chase and propose legislation that the government takes over all the banks.

This is how you take over the private sector, one industry at a time. First you pass a morass of laws, then you "save" them by taking them over by administrative fiat.

21 posted on 07/13/2013 2:41:28 PM PDT by oldbrowser (We have a rogue government in Washington)
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To: Cowboy Bob

I agree. A lot of folks here are so quick to attack anything a liberal says they don’t even stop to think whether there is any truth to it. There seldom is, but every now and then a blind squirrel finds a nut.

“Too big to fail” is too big.


22 posted on 07/13/2013 2:43:51 PM PDT by Hugin
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To: Olog-hai
As always with regulations, the devil is in the details. However, this may actually be one of the two times a day when the stopped clock is right. I commend to every FReeper's attention Luigi Zingales's A Capitalism for the People. Zingales makes a distinction between pro-market and pro-business policies.

As to his bona fides: Sarah Palin was quoting and praising Zingales on the basis of having read the scholarly work of which A Capitalism for the People is a popularization before the book came out. He grew up in Italy and fled in horror from its system of cronyism and is now appalled to see the same arising here. He's a professor in the Booth School of Business at the University of Chicago (and remember, that's the one thing in Chicago that's plainly on our side: the business school and econ department at U. Chicago).

23 posted on 07/13/2013 2:48:16 PM PDT by The_Reader_David (And when they behead your own people in the wars which are to come, then you will know...)
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To: Cowboy Bob
She's right this time, blind squirrel and the nut and so on.

But likely whatever bill she introduces on the subject will look as much like the original Glass-Steagal act as Rubio's current immigration stance looks like the one he had before he was elected.

24 posted on 07/13/2013 2:59:45 PM PDT by slowhandluke (It's hard to be cynical enough in this age.)
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To: griswold3
Without a society with a conscience, laws are meaningless.

Excellently put. Laws reflect society, they don't form it.

25 posted on 07/13/2013 3:29:16 PM PDT by BfloGuy (The imposition of a duty on the importation of a commodity burdens the consumers. --Ludwig Von Mises)
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To: Olog-hai

No matter what else we think about her, she is 100% accurate on this topic. Those knee-reflexing against her probably don’t understand the issue or are too lazy to try and understand it.


26 posted on 07/13/2013 3:31:50 PM PDT by sakic
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To: sakic

she probably wants them nationalized


27 posted on 07/13/2013 3:33:52 PM PDT by GeronL
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To: Cowboy Bob

Bingo! I’m a little surprised it took more than 10 posts for this.


28 posted on 07/13/2013 3:35:36 PM PDT by FreedomPoster (Islam delenda est)
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To: Olog-hai
If Juan McLame and Liar Watha are for it, I'M AGAINST IT!
29 posted on 07/13/2013 3:38:05 PM PDT by pietraynor (Government does not solve problems; it subsidizes them. Ronald Reagan)
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To: Olog-hai

“Warren wants to revive portions of the Banking Act of 1933, dubbed Glass-Steagall, a law passed after the Great Depression to separate commercial banking from investment banking.”

I REALLY HATE it when I agree with a commie. ESPECIALLY one as reprehensible as Warren. Still. I suppose even a blind commie finds an acorn once in a while.


30 posted on 07/13/2013 3:39:57 PM PDT by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: Zeneta

Agree 100%


31 posted on 07/13/2013 3:40:35 PM PDT by Cyman
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To: Zeneta

Why?


32 posted on 07/13/2013 3:46:07 PM PDT by Olog-hai
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To: Olog-hai
Dear Comrade Warren,

Have you and the SEC been able to find your arses yet with that SQL statement telling you exactly where to find them -- along with the thousands of Mortgage Applications with FRAUDULENT FICO SCORES that were manufactured by Argent Mortgage?

NO?



Then NO SALE.
33 posted on 07/13/2013 3:49:10 PM PDT by TArcher ("TO SECURE THESE RIGHTS, governments are instituted among men" -- Does that still work?)
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To: Olog-hai

How bout we bust up every G-damn government agency from A-Z?

How bout we start with the IRS, EPA, and DHS for starters?


34 posted on 07/13/2013 3:52:17 PM PDT by unixfox
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To: Olog-hai
I worked for a family-owned bank for 16 years.

They were actively engaged in giving up their federal charter and FDIC insurance when they were abruptly closed and liquidated by the FDIC for no ascertainable reason.

The patriarch fought it until he contracted a rare cancer and died last April.

These people kill people.

35 posted on 07/13/2013 4:08:20 PM PDT by elkfersupper ( Member of the Original Defiant Class)
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To: Former Proud Canadian

Yup.


36 posted on 07/13/2013 4:09:15 PM PDT by wonkowasright (Wonko from outside the asylum)
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To: Cowboy Bob

I concur and would further point out the outright corruption that exists. Politicians and government executives make rulings favorable to the big boys. Many of them leave government and take big time jobs with huge bonuses with the same companies. Rinse and repeat.

The executives reap the profits and the taxpayers eat the losses. It’s the most profitable crime going and it’s perfectly legal thanks to our criminal politicians.

I bet 98% of Americans are not even aware that a large part of the housing crisis was caused by cooking the books to obtain outrageous bonuses. I bet 98% of Americans would be ticked off if they knew that no effort was ever made to prosecute those responsible or recover the criminally obtained money despite the fact that taxpayers had to bail out these companies due in part to the fraud committed by the executives. I bet 99% of Americans are not aware that many of the key players in this crime were Clinton administration politicians.

Our nation is ignorant to the injustice that allows the banksters, unions, and politicians to rob future generations.


37 posted on 07/13/2013 4:19:04 PM PDT by volunbeer (We must embrace austerity or austerity will embrace us)
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To: Olog-hai

I suspect she didn’t get the memo. The more concentrated banking assets, the easier they are to control and manipulate the masses. I predict she will be ordered by her commie overlords to stand down from this public position very quickly.

I am a banker and former regulator and I happen to agree with breaking them up. We have too many economic eggs in a small basket and the huge chunks of risk need to be trimmed down in size. But if you look at the leftist bank regulation that has come down the pike beginning with Dodd-Frank, it is decisively in favor of large banks and is having the effect of encouraging further industry consolidation, which is the precise opposite direction we should be going. Life is getting very tough for us community bankers, and we did far less to contribute to the housing bubble and liquidity crisis than did the big boys. . . IMHO


38 posted on 07/13/2013 6:56:12 PM PDT by RatRipper (Self-centeredness, greed, envy, deceit and lawless corruption has killed this once great nation.)
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To: RatRipper

There has to be a way to do a breakup that is not according to the design of two Democratic politicians from the 1930s, I would imagine . . . ?


39 posted on 07/13/2013 8:26:30 PM PDT by Olog-hai
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To: Olog-hai

There was legislation in about 1996 (which I cannot recall the name of the after several glasses of wine) that governed the percentage of deposits that a banking institution could control in a particular state. I think it was set at 10%, which is probably too high. Also, before that, the Justice Department reviewed merger applications for market share in local markets. There reviews were also frequently used as a means of shakedowns by “civil rights groups” who routinely filed objections to the mergers. Frequently, in the course of mergers, the acquiring bank was required to divest of certain acquired branches during the merger.

Somehow, the top 10 banks in the US now control over 50% of deposits in this country, and it got worse with the Lehman, WAMU, SouthTrust and other failures when the 2008 liquidity crisis hit. I think 50% is too high because of diversification of risk issues, plus the potential for government collusion.

You are right. I do NOT support government directed/ ordered divestiture plans. I do favor legislation that limits pertinent market share percentages. Self-managed divestiture under the limits of the law is far preferable. But in my mind, there is a clear public benefit from limiting the size/ market share of financial institutions, not the least of which is corporatist alliances between large banks and government to the detriment of the citizens. I think that there is absolutely no question that we have that situation right now.


40 posted on 07/13/2013 8:51:12 PM PDT by RatRipper (Self-centeredness, greed, envy, deceit and lawless corruption has killed this once great nation.)
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