Glass Steagall and Dodd Frank

[Ryusei the Morning Star]

So yesterday potus put a halt on the Dodd-Frank financial regulation order largely citing it's ineffectiveness. It's been hitting smaller banks much harder than the "too big to fail banks"

 

However, both POTUS and Treasury Sec (nominee) Mnuchin have supported the "harsher" Glass-Stegall legislation that was largely successful. 

 

"The president has mentioned reinstating the Glass-Steagall Act, which separated commercial and investment banks until the late 1990s. Trump's Treasury secretary pick, Steven Mnuchin, reiterated that he is in favor of a "21st century" Glass-Steagall in testimony to Congress."

 

Comparison of the two laws

[mido9]

I'd really like to say that the glass-steagal thing is really not what caused the 2008 crisis or is causing the student loan/auto loan soon-to-be crisis.

 

The 2008 crisis was caused by the Community Reinvestment Act which basically made the government by 2000 force banks to lend to people that would have never got those loans otherwise based on some excuse of wanting to help poor communities, when they just didn't get them because as we've seen they're really bad to lend to. I mean basically 99.999999999% of ppl who deserved it would've gotten it from a normal bank, same for student loans so most of the government folk don't pay it back.

Glass-Steagal wouldn't have stopped it bc it doesn't prevent banks from buying those shitty securities for themselves(it prevented the same banks that hold deposits from issuing them for customers, but not from buying it for themselves). I mean, you could remake it and make commercial banks not buy for themselves but the separate banks that CAN issue loans will still issue these super-bad loans when they have to and will have to get bailed out. I mean, they're smaller but that's basically like cutting someone with a knife then telling them "dw I have good bandages" then downgrading it to a razor and saying "well at least now we need less bandages".

[Ryusei the Morning Star]

I'd really like to say that the glass-steagal thing is really not what caused the 2008 crisis or is causing the student loan/auto loan soon-to-be crisis.

 

The 2008 crisis was caused by the Community Reinvestment Act which basically made the government by 2000 force banks to lend to people that would have never got those loans otherwise based on some excuse of wanting to help poor communities, when they just didn't get them because as we've seen they're really bad to lend to. I mean basically 99.999999999% of ppl who deserved it would've gotten it from a normal bank, same for student loans so most of the government folk don't pay it back.

 

Glass-Steagal wouldn't have stopped it bc it doesn't prevent banks from buying those shitty securities for themselves(it prevented the same banks that hold deposits from issuing them for customers, but not from buying it for themselves). I mean, you could remake it and make commercial banks not buy for themselves but the separate banks that CAN issue loans will still issue these super-bad loans when they have to and will have to get bailed out. I mean, they're smaller but that's basically like cutting someone with a knife then telling them "dw I have good bandages" then downgrading it to a razor and saying "well at least now we need less bandages".

Note, they said 21st century version. There's likely gonna be changes to address shortcomings like CRA. You're right that Glass wouldn't have stopped them from buying the toxic securities, but part of the problem is they also sold it right? A lot of people's investments bottomed out cause the securities weren't worth anything

[Halubaris Maphotika]

However, both POTUS and Treasury Sec (nominee) Mnuchin have supported the "harsher" Glass-Stegall legislation that was largely successful. 

YES!

 

For 17 years, America has suffered since Clinton repealed the Glass-Steagall act. Since then. Wall Street and Banks have colluded at the detriment of American's all over as failed investments have left citizens unexpectedly destitute and homeless. Bill Clinton's repeal of Glass-Steagall can be directly attributed to the faltering of banks in the mid-2000's, the Wall Street crash in 2008, and the rise in corporate cronyism in politics.

 

All people have been asking for is for the return of Glass-Steagall!

 

THIS SHOULD BE SUPPORTED BY BOTH PARTIES.

 

https://berniesanders.com/yes-glass-steagall-matters-here-are-5-reasons-why/

 

-Bernie Sanders ran on reinstating GS

 

https://www.brookings.edu/blog/fixgov/2016/07/24/democrats-and-republicans-agree-reinstate-glass-steagall/

https://www.nytimes.com/2016/07/20/business/economy/gop-joins-democrats-urging-glass-steagalls-revival-dont-hold-your-breath.html?_r=0

 

This is one of the few policies favored by both major political parties.

 

When Bill Clinton repealed the act, he doomed a rising American economy into financial turmoil. Directly causing the financial crisis' in both 2004 and 2008.

 

Don't think this is an issue?

 

http://www.forbes.com/sites/ryanwibberley/2016/10/16/could-the-return-of-glass-steagall-prevent-wells-fargo-style-debacles/#1b8ffce5de15

https://www.nerdwallet.com/blog/banking/banking-news/what-wells-fargo-settlement-means-for-consumers/

http://wallstreetonparade.com/2017/01/u-s-quietly-drops-bombshell-wall-street-banks-have-2-trillion-european-exposure/

https://www.wallstreetprep.com/knowledge/about-investment-banking/

 

If Donald Trump brings back Glass-Steagall, it will finally end a tumultuous 17 years of financial turmoil in the United States and could significantly help rebuild from the ashes.

 

If he does this, I will vote for him in 2020. Guaranteed. I have disliked the Clinton's and Obama for repealing and refusing to bring it back after all of the damage it caused.