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New Glass-Steagall Act Key to Ending Too Big to Fail

Last week, four senators that include Elizabeth Warren (D-Mass.) and John McCain (R-Ariz.) introduced a bill to reinstate the Glass-Steagall Act.

The 21st Century Glass-Steagall Act, as it's called, would bring back many of the provisions of the former law and strengthen language to limit financial speculation by the big banks, reduce risk, and attempt to end "Too Big to Fail" once and for all.

The original legislation, called The Banking Act of 1933 but commonly referred to as Glass-Steagall, was partly repealed by Congress in 1999 and signed into law by President Bill Clinton. But by the time Glass-Steagall was repealed, the law had already been watered down and full of loopholes that left the U.S. economy highly vulnerable to a financial crisis.

Many economists believe that the partial repeal of this law was responsible for the recent financial crisis.

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  1. don larson | July 19, 2013

    Just tell me where a Poor Man can send the biggest check ever donated to any One, or, Organization – – on GS. It should have never been repealed. The brighter and more education one has; the TIGHTER the REGULATIONS must be Written. ALL Members of the Wall Street Crowd work in a Culture of Criminality. They Produce Nothing! Rent Seekers and Sleight of Hand, Robber Barons – – they are. Most disgusting human beings on the Planet.

  2. don larson | July 19, 2013

    Elizabeth Warren, Shelia Bair, Meredith Whitney, David Walker, David Stockman; and Commenter – – Shah, make up my, "Dream Team," of Regulators; whose Political Stars are Rising. Word to the Wise; don't f . . . with Elizabeth Warren; she has a huge following; after Karl Rowe under minded her for the Consumer Protection Division. These people are the only one's capable of reining in the Predators on Wall Street. They KNOW the Business better than the Pin-stripes; and, they know where the Bodies are Buried. They are also above, reproach.

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