Ten years after the Clinton administration did the groundwork for the financial meltdown by repealing the Glass Steagall Act, something I looked at here. US lawmakers plan to bring it back with proposals that force Wall Street behemoths to choose whether they want to be commercial banks or investment houses. Under these proposals mirroring Glass-Steagall, they can’t be both.
Wall Street Pit says it needs to be done to stop the bank oligopoly. The banks are too big and because they are allowed to play with other people’s money, it’s brought the system to its knees.
Still, that’s unlikely to get past the Obama administration with White House economic adviser Austan Goolsbee saying he does not believe the Glass-Steagall repeal caused the crisis. There is no way the Obama administration, in the pocket of the banks, will support the new proposals.
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