Monday, April 11, 2016
What Was The Glass-Steagall Act?
IN the news today political commentator, professor and author Robert Reich has endorsed Bernie Sanders for U.S. President. Despite Reich being good friends with Hillary and former president Bill Clinton, he backed Sanders over Clinton for democratic presidential nominee.
Why? is the question we should be asking ourselves. The answers can be found in this SF Chronicle article: Despite Clinton ties, Reich backs Sanders for economic stance.
One thing I took from the article is Reich's belief that Bernie Sanders has the "passion and authenticity to take on Wall Street and the elites that control the system." The other is Bernie's willingness to re-instate the Glass Steagall Act, a 1933 law requiring commercial banks to separate their banking and investment activities to avoid "conflicts of interests that lead to speculative trading and unprofitable loans." The law was initially instated to ensure confidence in a depressed banking system and safeguard against some of the causes of the 1929 stock market crash.
The bill was sponsored by senator Carter Glass (federal reserve co-founder) and House Rep. Henry Steagall (former treasury secretary). These were obviously men who had experience in the monetary policy and economics.
The Steagall Act was partially repealed and replaced by the Graham Leach Bliley Act, which allowed consolidation of commercial banks, investment banks, insurance companies and securities firms, while failing to regulate large investment holding companies. President Bill Clinton signed the legislation into law in 1999, paving the way for unregulated banking practices.
CNN reported last October that Hillary Clinton dismisses idea of re-instating Glass-Steagall Act in favor of her own Wall Street plan.
The more you watch and read political news, the more obvious it is that money and favors is everything in politics. Follow it and you just might end up discovering the truths behind WHY? Can it be the American people are no longer a good investment and only profitable as consumers?
What if, just maybe, Bernie Sanders has what it takes to bring a good, working government back to the United States; government of the people, by the people and for the people shall not perish from the earth. It's sure an idea citizens don't wanna sleep on in 2016.
Clinton vs Sanders: How their wall street plans stack up