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Note: The opinions expressed by the moderators and members of this discussion board do not necessarily reflect the opinions of Occupy Together or Occupy Wall St. In the spirit of free information, open discussion, and the freedom of expression, members are able to speak about issues relating and directly pertaining to the Occupy movement. You will be banned for hate speech or intentional misinformation and please refrain from any violent rhetoric; this is a peaceful movement. Thank you.
Pass Glass-Steagall Act NOW
  • hugo October 2011 +1 -1
    The law that can control speculation from banks
  • hugo October 2011 +1 -1
    Roosevelt’s Glass-Steagall law from 1933 meant that banks that accepted deposits could not be involved in very risky activities, like issuance of securities, etc. The resulting barrier between normal bank activity and more speculative activity was, as stated, removed with the Gramm-Leach-Bliley law from Nov. 1999. In the U.S. right now, there are strong proponents for reinstating the principles of the Glass-Steagall law, so that the stockholders behind these activities, and not the taxpayers, should bear the losses caused by failed speculative financial transactions.”
  • hugo October 2011 +1 -1
    “With abundant clarity, the financial crisis has shown that it is necessary to have tight regulation of the financial sector. Since the beginning of the 1980’s, a comprehensive deregulation/liberalization of the financial markets has been carried out, beginning, in the U.S., during Ronald Reagan’s presidency. In the U.S., that culminated with the Gramm-Leach-Bliley law from Nov. 1999, which, among other things, repealed Roosevelt’s Glass-Steagall law from 1933, which prevented banks that accepted deposits from being involved in the issuance of securities, etc.
  • TimRiggins October 2011 +1 -1
    I support passing the Glass - Steagall Act Now!
  • cntrlfrk October 2011 +1 -1 (+0 / -1 )
    The Glass-Steagall Act was passed in 1933. We don't need to pass it again.

    Disagrees: dave86

  • ProfessorPete October 2011 +1 -1 (+1 / -0 )
    Cntrlfrk is right... We just need to repeal Gramm-Leach-Bliley Act!
    Even though the economy went through its ups and down, booms and recessions, between 1933-1999, does not mean that Glass-Steagall was ineffective. There are naturally occuring business cycles in every market economy; Glass-Steagall merely kept banks solvent by limiting the risks that commercial banks could take. This was also good for the consumer in that his money was tied up in mortgages & small loans, not risky securities swaps. Mortgage-backed securities should never have been allowed to happen...
    P.S. Thank you, Hugo... You are one of very few Americans who know what Glass-Steagall is while simultaneously being able to appreciate its role in consumer financial protection... I wrote about it briefly in this Forum and nobody answered... I was a little worried that nobody understood. So, thank you!
  • lbmr58 October 2011 +1 -1
    The Glass-Steagall Act, amongst other things, is not able to be passed as it is not up before congress - it has been repealed by the 1999 Financial Moderization Act. The world has changed so much since 1933 when the G-S Act was passed that by simply bringing that back would not address all of the things such as the de-regulations of the 1980 bill by Ronald Reagan, or the enormous dividends from Hegdefunds. If we repeal the1999 bill it would bring back the G-S Act and repeal all of the protective measures against corporations.
    We should get rid of the Federal Reserve! That is the root of the government/corporate relationship.
  • Unitedunions October 2011 +1 -1
    Why not repeal all corporate and banking laws, and all Supreme Court rulings affecting corporation and banking finance practices--except anti-corruption and civil rights laws--since, say…year nineteen-sixty-five? That seems to be about the time the downward spiral started. Does someone have a list of the Congressional Acts and Supreme Court rulings that have led to this financial collapse and subsequent bail outs? The Occupiers should be focusing on the sources of this collapse, such as the 1980 de-regulation bill, the repeal of the Glass-Steagall Act, and the Supreme Court ruling that abolished decades old limits on corporate and union campaign donations.
  • pauliswood October 2011 +1 -1
    I agree with the OP. The repeal of glass-stegall along with the clinton era (unfortunate because he was so good with many other things) decision not to regulate the new-born derivatives market is what caused 99% (no pun intended) of our current woes.

    You give a kid access to unlimited candy, he's gonna make himself sick.
  • cdemers October 2011 +1 -1 (+1 / -0 )
    If this movement can focus on a few good issues like this, we'll get Wall Street's attention. They don't care if people hate corporations or want to "restore democracy". But restoring Glass-Steagall will get their attention because it would likely ruin many of them. They're broke without a direct line to our mortages and earnings. We The People are on the hook for the investment institutions' (so-called banks') gambling tab. There is a bipartisan effort in Congress, HR 1489, the 'Return to Prudent Banking Act of 2011,' which would repleal Gramm-Leach and restore the protections of the 1933 Glass-Steagall Act. I think most people understand that bailing out the big investment institutions in 2008 saved the speculators at the expense of society. We are seeing the evidence of that everywhere. If we can all get behind HR 1489, we'll get Wall Street's attention fast and it will be interesting to see media's take on it. This bill already has 45 co-sponsors but it is not getting any media attention.
  • danit October 2011 +1 -1
    Quoting lbmr58 "If we repeal the1999 bill it would bring back the G-S Act and repeal all of the protective measures against corporations." So are you saying that bringing back the G-S Act would be good, but would be bad in that it would nullify more current regulations? So do we need to start over using the G-S Act as a starting point? Or am I confused?
  • Gambino October 2011 +1 -1
    I think it is a good starting position. I would need to read HR1489 to see what they added into it. There is still a big problem with getting it passed as Congress has a bias towards the banks right now.
    What is certain is that our grand parents were onto something after the 1929 crash of the markets. They took several years to ink the G-S act, because they had time to analyze the effects on a smaller economy.
  • MinorSocratic October 2011 +1 -1
    Hello all, Nick Feden from Occupy Philly here. Glad to see such high-level discussion taking place in the midst of all of this energy. Below I've included summaries of two House actions for your consideration.

    The first is H.R. 1489: Return to Prudent Banking Act of 2011 (Full Info: http://www.govtrack.us/congress/bill.xpd?bill=h112-1489)

    4/12/2011--Introduced.

    Return to Prudent Banking Act of 2011 - Amends the Federal Deposit Insurance Act (FDIA) to prohibit an insured depository institution from being an affiliate of any broker or dealer, investment adviser, investment company, or any other person or entity engaged principally in the issue, flotation, underwriting, public sale, or distribution of stocks, bonds, debentures, notes, or other securities. Prohibits officers, directors and employees of securities firms from simultaneous service on the boards of depository institutions, except in specified circumstances. Requires any such individual serving as an officer, director, employee, or other institution-affiliated party of any insured depository institution to terminate such service as soon as practicable after enactment of this Act. Requires an insured depository institution to wind-down in an orderly manner and terminate any affiliation prohibited by this Act. Amends the Banking Act of 1933 (Glass-Steagall Act) to expand its prohibition against the transaction of banking activities by securities firms. Declares that Congress ratifies the interpretation by the Supreme Court of specified statutory language in the case of Investment Company Institute v. Camp ( ICI vs. Camp) regarding permissible activities of banks and securities firms. Declares that the reasoning of the Court in that case shall continue to apply to the limitations placed upon security affiliations under the FDIA as enacted by this Act. Prohibits a federal banking agency or federal court from issuing an interpretation regarding such security affiliations that is narrower than that of Court in ICI vs. Camp. Makes technical and conforming changes to the Gramm-Leach-Bliley Act, the Revised Statutes of the United States, and specified federal law. Requires the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, or another appropriate federal banking agency to report to Congress a detailed description of the basis for its decision each time it makes a determination or grants an extension concerning an affiliation between insured depository institutions and investment banks or securities firms.

    ----

    The Second is H.R. 2451 Glass-Steagall Restoration Act (Full Info: http://www.govtrack.us/congress/bill.xpd?bill=h112-2451 )

    7/7/2011--Introduced.

    Glass-Steagall Restoration Act of 2011 - Amends the Banking Act of 1933 (Glass-Steagall Act) to prohibit a member bank from being affiliated with specified organizations engaged principally in the issue, flotation, underwriting, public sale, or distribution of stocks, bonds, debenture, notes, or other securities. Prohibits the staff and personnel of corporations and partnerships (as well as any individual) primarily engaged in the issue, flotation, underwriting, public sale, or distribution, of stocks, bonds, or other similar securities from serving simultaneously as an officer, director, or employee of any member bank. Authorizes the Board of Governors of the Federal Reserve System to grant an exception in limited classes of cases when in the Board's judgment it would not unduly influence the investment policies of such member bank or the advice it gives its customers regarding investments.


    After we've had a chance to peruse the full text, let's get back and discuss.
  • eyezin October 2011 +1 -1
    Love it...Love it...Love it!!!! There is sooo much that has happened in the banking system - either enacted behind our backs or without our support or approval. Repealing the Glass-Steagall Act was one of them. We absolutely must have this Act re-instated - to protect OUR assets give us the assurance that the banksters aren't in the alley shooting craps with our money!!!
  • gavemehope October 2011 +1 -1
    That is the best move we got, and was during the bank regulation, besides breaking up the bank also. There were many pushing for that during the financial regulation, and I was routing for it too. Both sides have contributed to this 30 year dismantling of regulations, from Reagan, to Clinton who finished off.
    With all the money they have made off that since, I think that me be one of those get money out of politics things first. They have everyone bought that is in, and everyone one coming in thanks to citizens united. Until at least 12, or sometime next year 150 million people show up in Washington.
    The Volker rule has been passed. We can call for pressure to enforce it now, and make the global markets a little safer now, but I would never stop shouting for Glass-Steagall, and it's great to see so many people doing it. Breaking up the banks wouldn't be bad either.
  • gavemehope October 2011 +1 -1
    Co-erced by money. If you look at the judgments handed down in this time, it's obvious they are not unbiased or fair. Citizens united was one in a long line of decisions money over people, and is where our checks and balances have failed us the most. Must be more rules and laws made to watch these things.
    Most likely the same money that killed Glass- Seigal. Even presidents don't make anywhere near the money that is in the private sector, and sometimes they could be in debt themselves or just want to retire wealthier. So ya, co-earced
  • Dick October 2011 +1 -1
    It seems clear to me that the first step in preventing Wall Street speculators from gambling with taxpayer money has to be eliminating the use of government insured deposits for speculative investments. This is only the most obvious thing needed but it will be very difficult because it is a big shift from the point of view that the invisible hand of the market will automatically deal with those participants that behave badly. Incredibly, although since 2008 even Alan Greenspan has acknowledged that he overestimated the market's capacity to self regulate the prevailing wisdom on the right continues to be that we need to get government out of the way so the market can operate properly. It would be easier to convince those folks that we should do away with deposit insurance entirely (which would be a huge mistake) than to re-regulate the banks. In fact, since the Reagan era, the regulators have gone through a slow painful emasculation and are now the handmaidens of the institutions they are supposed to regulate. It took at least 30 years of persistent corporate effort to unwind the benefits of Glass-Steagall and getting those benefits back is not as simple as reversing the final nail in the coffin which was the Gramm Law. Before 1999 we had all kinds of major corporations involved in banking including the taking of insured deposits and the making and selling of mortgages including Sears through Nationwide Bank. This is going to be tough!
  • Dick October 2011 +1 -1
    @minorsocratic thanks for the citations. Glad that someone in Washington is trying.
  • Gambino October 2011 +1 -1
    Glass-Stegall and the new volker rule are failed attempts to do what needs to be accomplished. The Volker rule only makes it illegal for banks to invest the depositors money in the markets to earn addtional profits. The new financial regulation does not attempt to deal with the issue that Banks can own Brokerages or Investment banks in the manner that G-S kept them apart. Outside of those pieces, which are a good portion of the problem, we are still left with the too big to fail issues. Banks at one time could not really grow that large because of the Interstate banking regulations.

    Once congress got rid of that, it started us down the road toward large monopolistic banks, which we have now, and are classified as too big to fail. We need to unwind a bunch of banking regulation, which will reduce the profits and size of many of our banks to get us back to a place that can ensure safety.

    The one thing we have going for ourselves is that these institutions survive because of our deposits. If we can't get congress to move, then we need to get everyone we know to move their bank account to a credit Union. Doing that will get everyone on Wall Street, the Treasury and The Fed to sit up and notice.

    Some in this discussion group will say that will tank the ship (economy), but I say no it will not. It will create some panic but because we are shifting our money from one institution into another which has liquidity in the markets, your money is going to still be in circulation. This is the real important part to keep everything from collapsing. If you just take those greenbacks, Dinar , PESO's , Lira etc home and hide them under the mattress, then you would lead us down a path (potentially) toward collapse.

    I would go as far as saying that a total collapse in this scenario might not be possible since QE1 and QE2 printed effectively $2.8 Trillion in Funny money into the economy. So liquidity is not the issue here. The problem is inflated prices and collapsing wages. (i.e. Stagflation). The last time the U.S. economy was in this type of position was Nixon, Carter, Ford etc. It took us nearly a decade to get out of it.

    So go out and move your money today to a credit union. They do banking the old fashion way(honestly). Stop giving the Robber Barons(JP Morgan, Chase, Citigroup, BoA, etc) your money that they can use to destroy all of us. Unless you prefer being a peasant.
  • luQ October 2011 +1 -1
    FYI, someone started a petition about this on the White House website - you may want to promote and sign it:

    https://wwws.whitehouse.gov/petitions#!/petition/re-establish-and-maintain-separation-between-investment-banks-and-commercial-banks/ywCMKDfn
  • OccupyGJ October 2011 +1 -1
    Doesn't seem like representative government is working. We can't get what we want from our own congress. Let's junk the whole congress thing and vote on everything ourselves. We'd save a fortune on wages, and benefits for congressmen who don't do anything for us anyway.
  • granpachuck6 October 2011 +1 -1
    what ever happened to the anti trust laws concerning monopolys,,yes we need to put back the regs..
  • RobReiken October 2011 +1 -1
    Knowing Government Filth such as Barney Frank & Chris Dodd killed Glass Steagal is all proof one needs to know The Global Conspiracy for NWO One World Government is
    %1000 truth. Syria is next on list for takeover then Iran , theres about 4 countries left for takeover then they will take us into WW3.7 countries in 5 years is da plan for last ones to get their filthy corupting banks into them. Were now at the last domino to fall for the beginning of the end. People say what can we do, well for starters allot more people need to wake up & act upon it each & every one doing something to spread da word will make a huge differance for this Revolution Awakening. When that Bank Holiday hits like it did 2001 Argentina NWO Plan test run all accounts wipped out people starved to death 30,000 + kids then we'll be in streets when it's too late. Our Western gov are now dicatating to us without say Freedom Of Speech removed, so gladly many are realizing it & we the people as a majority can oust Gov Tyranny only if we act upon it in the right way. So vote in Ron Paul 2012, Abolish The Fed , Patriot Act, Executive Orders & any other Tyrant Laws passed, reinstate Glass Steagal & prosecute all Government War mongering dirtbags in The Court Of Law
  • johnb001 November 2011 +1 -1
    Both major political parties have been complicit in permiting the financial system to be converting from supporting the productive economy to one the supports financial manipulation and commodity speculation. Major corporations have off-shored as much of their operations as possible. The WTO has made all this possible via rules that favor globalization of financial and business activities that are beyond the reach of democratic government. Tax havens cream off much of wealth creation in off-shore USA. Yes, of course Glass-Steagall should be reintroduced, but that is only a very small start in avoiding the disaster that is only a few years away when the US dollar will no longer be accepted as the world's reserve currency.

    The US business/financial system must be totally reformed to serve the needs of the people rather than those of the elites that have so mismanaged things. I have published the why and what to do in "Sabotaging America", but will offer more profound details in "Sabotaging Anglo-America".



  • DeMarquis December 2011 +1 -1
    Ok, so there appear to be two bills in the house that are intended to reverse the effects of the FSMA act of 1999 and re-instate the G-S Act of 1933. These are (as stated by MinorSocratic) H.R. 1489: Return to Prudent Banking Act of 2011 (Full Info: http://www.govtrack.us/congress/bill.xpd?bill=h112-1489) and H.R. 2451 Glass-Steagall Restoration Act (Full Info: http://www.govtrack.us/congress/bill.xpd?bill=h112-2451 ).

    At first blush, HR 1489 appears to be the stronger of the two. See this comment (at ) "...H.R.2451 allows for exceptions of member banks to be granted by the Fed. This is UNACCEPTABLE, and creates a loophole for banks with influence to get around the restriction put in place by the Glass-Steagall Act."

    Both are currently in the same committee, the House Committee on Financial Services. The most effective response right now would be to organize a write-in campaign to the members of those committees. This committee has 61 members, but it's chaired by Spenser Bachus (R-, and each bill has it's own sponsors:

    HR 2451 is sponsored by Maurice Hinchey (D-NY) and co-sponsored by the following:
    Michael Capuano [D-MA8]
    John Conyers [D-MI14]
    Peter DeFazio [D-OR4]
    Jay Inslee [D-WA1]
    Lynn Woolsey [D-CA6]

    HR 1489 is sponsored by Marcy Kaptur (D-OH) and has 57 co-sponsors.

    I would direct the letter campaign to the principle sponsors, and perhaps to those committee members who represent districts that have a strong Occupy presence.

    Of course, this assumes that writing to Congressmen is an effective method of instituting reform. If you dont share this assumption, my idea wont appeal to you.

    Thoughts, suggestions?
  • CSPANwonk December 2011 +1 -1
    Good news is the MF Global deal! The owners who legitimately hedge like farmers are really mad and demanding more regulation or alternatives to use this system of brokers. More and more lawsuits, investigations and distrust is leading us in the right way.