I completely disagree. After the panic that caused the Great Depression, policy makers very wisely passed Glass Steagall to prevent future rounds of Wall Street financial stupidity. Unfortunately it has been undone due to Wall Street lobbying.
Queen Elizabeth Crushes Wall Street
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I completely disagree. After the panic that caused the Great Depression, policy makers very wisely passed Glass Steagall to prevent future rounds of Wall Street financial stupidity. Unfortunately it has been undone due to Wall Street lobbying.
ok, reinstate Glass Steagall and we will never have to worry again
We should reinstate it. But you'll never see that, because Wall Street owns Washington, and they'll never let it be passed.
Piezoe, for all his faults, is one of the most cordial individuals on this forum.
Glass Steagull separated commercial banks and investment banks - which makes sense. Commercial banks are focused on low risk retail activities such as residential mortgage lending, savings and checking accounts. Investment banks are focused on using risk to make profits via securities. From a regulatory perspective it makes sense to clearly separate these activities for the protection of the public and not let them intersect.
Unfortunately Wall Street lobbied many years for the repeal of Glass Steagull - pouring endless money into politicians. The leading edge of this was the merger of Citibank (a commercial bank) and Salomon Smith Barney (one of the world's most reckless trading firms). Ever since then there has been endless cross-ownership and all the other provisions of Glass Steagull have effectively eliminated over time.
"The Big Short: Inside the Doomsday Machine" by Michael Lewis outlines the insanity that prevailed in the mortgage bond market leading to the 2008 meltdown after Glass Steagull was dismantled. This would have been prevented if Glass Steagull was still in place.
http://www.amazon.com/Big-Short-Inside-Doomsday-Machine/dp/0393338827/
like my bubbie always said, "A healthy man you feed, to a sick man you offer" They want to believe that myth and it's now almost like a religion
Jamie Dimon Says Banks Are Under Assault As He Announces $4.9 Billion Profit
Posted: 01/14/2015 12:29 pm EST Updated: 01/14/2015 12:59 pm EST
We should all do so well while under assault.
JPMorgan Chase earned $4.9 billion in the fourth quarter of 2014, the company announced on Wednesday, down from a year ago, but capping what CEO Jamie Dimon called a record year for the biggest U.S. bank by assets.
Despite this success, Dimon warned that "banks are under assault," from government regulators.
"In the old days," Dimon said, "you dealt with one regulator when you had an issue, maybe two. “Now it’s five or six. It makes it very difficult and very complicated.
"You all should ask the question about how American that is. And how fair that is," he added. "And how complex that is for companies."
The biggest U.S. bank by assets has had its fair share of trouble with regulators in recent years. In the fourth quarter, JPMorgan paid $1.1 billion to settle charges by U.S. and foreign regulators that its traders had manipulated currency markets. In those settlements, J.P. Morgan did not admit nor deny any wrongdoing.
"Obviously, companies make mistakes," Dimon said on Wednesday. "We try to resolve it, we try to fix it, we admit it."
In the past two years, JPMorgan has paid out $14 billion in settlements and fines related to the London Whale trading losses, manipulating the key interest rate benchmark Libor, and issuing bad mortgages that helped lead to the financial crisis.
The bank earned $39.7 billion in net income over those same two years.
Despite his complaints, Wall Street lobbyists, and Dimon himself, are orchestrating a "continuing assault" on the 2010 Dodd-Frank financial-reform law that "has achieved remarkable success," as the New York Times put it on Tuesday.
More>>
Posted: 01/14/2015 12:29 pm EST Updated: 01/14/2015 12:59 pm EST
We should all do so well while under assault.
JPMorgan Chase earned $4.9 billion in the fourth quarter of 2014, the company announced on Wednesday, down from a year ago, but capping what CEO Jamie Dimon called a record year for the biggest U.S. bank by assets.
Despite this success, Dimon warned that "banks are under assault," from government regulators.
"In the old days," Dimon said, "you dealt with one regulator when you had an issue, maybe two. “Now it’s five or six. It makes it very difficult and very complicated.
"You all should ask the question about how American that is. And how fair that is," he added. "And how complex that is for companies."
The biggest U.S. bank by assets has had its fair share of trouble with regulators in recent years. In the fourth quarter, JPMorgan paid $1.1 billion to settle charges by U.S. and foreign regulators that its traders had manipulated currency markets. In those settlements, J.P. Morgan did not admit nor deny any wrongdoing.
"Obviously, companies make mistakes," Dimon said on Wednesday. "We try to resolve it, we try to fix it, we admit it."
In the past two years, JPMorgan has paid out $14 billion in settlements and fines related to the London Whale trading losses, manipulating the key interest rate benchmark Libor, and issuing bad mortgages that helped lead to the financial crisis.
The bank earned $39.7 billion in net income over those same two years.
Despite his complaints, Wall Street lobbyists, and Dimon himself, are orchestrating a "continuing assault" on the 2010 Dodd-Frank financial-reform law that "has achieved remarkable success," as the New York Times put it on Tuesday.
More>>
Do you believe that if Glass Steagull was still in effect the commercial banks across the U.S. would have been feeding investment banks mortgages to bundle up into to CDOs? Do you believe that the commercials banks would have made more suitable and less risky loans if they were holding the mortgages on their books? Or would they have still gone hog wild and given $500,000 mortgages to people who made $14,000 per year on no-income check / no doc loans with no down-payment?
When your customers are broke, but you need to make sales, you gotta extend them credit and take your chances with default. : )