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US Senator Elizabeth Warren, the architect of the Consumer Financial Protect Bureau (CFPB), wants to put Glass-Steagall back into place. One of the purposes of the originial Glass-Steagall Act of 1933 was to separate commercial and investment banking. “The four biggest banks are now 30% larger than they were just five years ago, and they have continued to engage in dangerous, high-risk practices that could once again put our economy at risk,” according to Senator Warren. Hmm. The enormous spike in excess reserves may be what she is thinking about. EXCRESNS But Senator Warren forgets a few things. First, the...

Bill Clinton Is Responsible For Our Current Messposted February 17, 2010 Just as I have been saying all along, this current economic mess in which we find ourselves lies at the feet of Bill Clinton. While I have known this for some time from evidence found through various sources, the fact was driven home last night on a television special. Was it on Fox News? Far from it. It was on the PBS show, "Frontline." Long story short is that the deregulation of the financial industry under Clinton and his Treasury Secretary, Robert Rubin, along with their complete refusal to...

US Senators John McCain (R-Ariz.) and Maria Cantwell (D-Wash.) proposed reinstating the Depression-era Glass-Steagall Act that split commercial and investment banking to rein in Wall Street firms in response to the financial crisis. McCain and Cantwell join other lawmakers in Congress proposing to reinstate the 1933 law, repealed a decade ago by the Gramm-Leach-Bliley Act that led to a rise in conglomerates including Citigroup, JPMorgan Chase and Bank of America active in retail banking, insurance and proprietary trading. Legislation to reinstate the ban was introduced yesterday in the House. Under the Senate legislation, financial firms operating commercial banks and investment...