Repeal: Glass-Steagall/Stiegel Act
A Political Story on the Glass Steagall Act Repeal
Stiegel History of the Glass-Steagall Act repeal:
According to Forbes magazine, the formation of the Glass-Steagall Act arose in 1933. It was formed by Congress shortly after the stock market plumetted in 1929 while there was bank collapse across the United States (source). Essentially, the Glass Stiegel Act "separated investment and commercial banking" and may have potentially "hindered the establishment of financial services firms that can equally compete against each other" (source), which led to the repeal of the Glass Steagall Act.
Glass Stiegel Repeal Information: Did the Glass Steagal Repeal Destroy the American Economy?
The Glass Steagall Act helped compartmentize the U.S. financial industry in an effort to prevent future collapses and failures of U.S. banks such as what happened in the '30s. With the repeal of the Glass Stiegel/Glass Steagall act, the door was opened for a repeat of the pre-Glass Steagall Act era.
Stiegel History: Repeal of the Glass-Steagall Act
According to PBS Frontline, it took decades to repeal the Glass Stiegel Act. The Glass Steagall Act was finally repealed in 1999 after what Frontline calls "12 attempts in 25 years," with "Congress finally repeal[ing] Glass-Steagall, rewarding financial companies for more than 20 years and $300 million worth of lobbying efforts. Supporters hail the change as the long-overdue demise of a Depression-era relic" (source).
Steagall Repeal History: Why the Glass Steagall Act Was Necessary:
One of the reasons the Glass-Steagall Act was important for the financial security of the United States was because of bank speculation, much like what is happening in the current subprime mortgage crisis in the U.S. Back in the 1930s, many American banks were said to be dangerously speculative. Many banks, in the hopes of reaping financial rewards, took large risks, thus endangering the entire financial market. The Glass-Steagall Act was created to prevent such speculation on behalf of the banks.
Do we need to undo the Glass Stiegel repeal? Only time will tell as the current Bush administration battles the financial crisis in the United States. A new form of the Glass-Steagall Act may be necessary to revive the U.S. markets.
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- The Glass Steagall repeal may have affected the current American financial crisis
- The Glass Steagall Act (often spelled Glass Stiegel Act) was formed in 1933
- The Glass Steagall Act was repealed the 90s.
13 Comments
Post a CommentCrooks with oustanding educational qualifications who put their personal greed ahead of the welfare of our country and its citizens--FOR SHAME!
Your concern regarding corrupt corporate criminals ie. Wall Street is well founded. 85% of its' top 5 firms donated to the Obama candidacy. Watch as he mandates strict Glass-Steagall adhearance....Ooops! Repealed by Clinton Keep drinking the Kool-Obamaid.
Somewhere I read that the financial industry spent $300 million dollars working for the repeal of Glass-Steagall. Money is, of course, the mother milk of politics; and the lobbyists apparently bought a lot of politicians - both Republicans and Democrats. I have not seen a list of donors, but I'll bet that A.I.G, Citibank, Bank of America, and all the other money-churners that have become household names head the list..
People,
The repeal wasn't all due to conservatives. Look into it some more and you'll find a lot of Clinton people and other liberals floating around Obama who were involved in this whole thing. Citigroup who is getting all this bailout money was involved as was Robert Rubin, Secretary of Treasury, under Clinton.
Right now, I would have to say all of DC is to blame. And anyways, how about stopping all the pigeonholing of conservative/liberal bullshit. In my opinion those politicians are all in bed together and I think there agenda is money and power.
We people need to bond together and start demanding they work for the good of the people. I am sorry for all you Obama lovers but the man is not working in any of our best interests. He says one thing and does another. Listen and watch him carefully. He's a big time fraud and yanking the rings in peoples' noses.
Let see now, all those right wingers passed the repeal and old Billy boy zipped er stepped up and put his name on the line. Am surprised that "W" isn't getting blamed for the dirty deed.
You won't hear Limblahh, Hannity, OReilly and the rest of the right wing idiots talking about this. They don't give a damn about our country. All they care about is duping as many fools as they can into believing all regulation is bad. Republicans are whining now because Pres Obama is proposing a trillion dollars in spending. Republicans don't care that their deregulation led to the loss of up to 20 trillion dollars. Republicans could not care less about average Americans. All they care about is giving our country away to corrupt corporate criminals. It is amazing how ignorant republicans and conservatives are. They will continue to listen to and believe everything they are told by right wing radio freaks.
Who was the genius that said "if it ain't broke, don't fix it"? And where was he the day Glass Steagall was repealed? Hale to the chief ! ~ bp
I'm surprised that there aren't 100s of comments regarding the repeal of the Glass-Steagall Act instead of only 5. To allow Banks to be Brokerage Houses put depositors at risk. But no, said the bankers, we are being kept from growing and making money. Now we are in a big mess. Greed, greed and more greed.
Here you are Anne, Learn to read.
Oct.-Nov. 1999
Congress passes Financial Services Modernization Act
After 12 attempts in 25 years, Congress finally repeals Glass-Steagall, rewarding financial companies for more than 20 years and $300 million worth of lobbying efforts. Supporters hail the change as the long-overdue demise of a Depression-era relic.
On Oct. 21, with the House-Senate conference committee deadlocked after marathon negotiations, the main sticking point is partisan bickering over the bill's effect on the Community Reinvestment Act, which sets rules for lending to poor communities. Sandy Weill calls President Clinton in the evening to try to break the deadlock after Senator Phil Gramm, chairman of the Banking Committee, warned Citigroup lobbyist Roger Levy that Weill has to get White House moving on the bill or he would shut down the House-Senate conference. Serious negotiations resume, and a deal is announced at 2:45 a.m. on Oct. 22. Whether Weill made any
The Glass-Steagall Act of 1933 established the Federal Deposit Insurance Corporation (FDIC) in the United States and included banking reforms, some of which were designed to control speculation.[citation needed] Some provisions such as Regulation Q, which allowed the Federal
WIKIPEDIA ENCYLOPEDIA - JUST GOOGLE
Reserve to regulate interest rates in savings accounts, were repealed by the Depository Institutions Deregulation and Monetary Control Act of 1980. Provisions that prohibit a bank holding company from owning other financial companies were repealed on November 12, 1999, by the Gramm-Leach-Bliley Act, which passed in Congress with a 343-86 vote in the House of Representatives, before being sent to conference committee; the final bipartisan bill (Senate: 90-8-1, House: 362-57-15) was signed by President Bill Clinton.[