Bring Back Glass-Steagall and End Too Big To Fail

I just signed the petition to end “too big to fail” banks who had gotten so big in 2008 that when their risky investments went bust, their ruin threatened our entire economy. And instead of demanding a return to the commonsense and time-tested Glass-Steagall Act (which was passed in 1933 in the midst of the Great Depression because of the banks’ role in causing it), President Bush and Congress handed the banks big bailouts, paid for with our tax dollars and inflation of the money supply by the Federal Reserve.

 

Now, the consummate Wall Street insider, Sandy Weill, who successfully lobbied Congress to tear down the walls between Main Street banks and Wall Street by repealing the Glass-Steagall Act in 1999 (after which he proceeded to build Citibank into the financial behemoth Citigroup), has come out on national television against the very changes he had advocated, the changes which helped create the “too big to fail” financial giants, saying:

 

What we should probably do is go and split up investment banking from banking…Have banks do something that’s not going to risk the taxpayer dollars, that’s not too big to fail.. That means we need to press our solution hard enough for them to hear us on the rest of Wall Street — and in Washington.

 

Let’s NEVER let these behemoth banks hold our economy hostage again. Let’s end “too big to fail.” Please join me in protesting the tragic injustice of the repeal of Glass-Steagall in ’99 and objecting to the abuse of power by authority that Congress and President Clinton perpetrated against an entire nation by not doing everything in their power to stop it.

 

This image came from the website of economic journalist Barry Ritholtz.

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