Senator Elizabeth Warren (D) MA to re-attempt Glass Stegall

[pspr]

Quote from Ricter:

..so a thousand kids poisoned by tainted Chinese milk is not worth achieving ideological purity....

It's completely idiotic statements like this that make your comments worthy of the latrine.

 

[Martinghoul]

Quote from PiggyBank:
yeah it's a meme, just go ahead and point out how the crash wouldn't have happened had GS still been in place. And when you say it's an attempt by the financial industry to get back to business as usual, that might be true, but in my eyes they shouldn't exist right now. I have a huge problem with the bailouts and think the banks should have all gone tits up, you wealth redistribution types would have seen the largest transfer of wealth in human history as these banks assets were auctioned off during bankruptcy.. and i forgot to mention, opportunity.

The crash might have still happened. The point of Glass-Steagall isn't to prevent the crashes, but rather to insulate the deposit-taking part of a bank. Had Glass-Steagall or something like it been in place, there would have been no need to bail out Citi or BofA or even AIG. Here in the UK, we, the taxpayers, wouldn't be sitting on a corpse of RBS that can't be sold off, all thanks to Fred the Shred's efforts at subsidizing his grand capital mkts ambitions with depositor money. In fact, there probably would never have been an RBS, Citi or BofA in the first place, had G-S been in place.

I am not sure how I am a "wealth redistribution type", whatever that is, but it doesn't really matter.

 

[denner]

Quote from Martinghoul:

The crash might have still happened. The point of Glass-Steagall isn't to prevent the crashes, but rather to insulate the deposit-taking part of a bank. Had Glass-Steagall or something like it been in place, there would have been no need to bail out Citi or BofA or even AIG. Here in the UK, we, the taxpayers, wouldn't be sitting on a corpse of RBS that can't be sold off, all thanks to Fred the Shred's efforts at subsidizing his grand capital mkts ambitions with depositor money. In fact, there probably would never have been an RBS, Citi or BofA in the first place, had G-S been in place.

I am not sure how I am a "wealth redistribution type", whatever that is, but it doesn't really matter.

Exactly.

 

[jem]

well said.

Quote from Martinghoul:

The crash might have still happened. The point of Glass-Steagall isn't to prevent the crashes, but rather to insulate the deposit-taking part of a bank. Had Glass-Steagall or something like it been in place, there would have been no need to bail out Citi or BofA or even AIG. Here in the UK, we, the taxpayers, wouldn't be sitting on a corpse of RBS that can't be sold off, all thanks to Fred the Shred's efforts at subsidizing his grand capital mkts ambitions with depositor money. In fact, there probably would never have been an RBS, Citi or BofA in the first place, had G-S been in place.

I am not sure how I am a "wealth redistribution type", whatever that is, but it doesn't really matter.

 

[Tsing Tao]

Quote from Martinghoul:

The crash might have still happened. The point of Glass-Steagall isn't to prevent the crashes, but rather to insulate the deposit-taking part of a bank. Had Glass-Steagall or something like it been in place, there would have been no need to bail out Citi or BofA or even AIG. Here in the UK, we, the taxpayers, wouldn't be sitting on a corpse of RBS that can't be sold off, all thanks to Fred the Shred's efforts at subsidizing his grand capital mkts ambitions with depositor money. In fact, there probably would never have been an RBS, Citi or BofA in the first place, had G-S been in place.

I am not sure how I am a "wealth redistribution type", whatever that is, but it doesn't really matter.

+1

 

[PiggyBank]

Quote from Martinghoul:

1) The crash might have still happened. 2) The point of Glass-Steagall isn't to prevent the crashes, but rather to insulate the deposit-taking part of a bank. Had Glass-Steagall or something like it been in place, there would have been no need to bail out Citi or BofA or even 5)AIG. Here in the UK, we, the taxpayers, wouldn't be sitting on a corpse of RBS that can't be sold off, all thanks to Fred the Shred's efforts at subsidizing his grand capital mkts ambitions with depositor money. 3) In fact, there probably would never have been an RBS, Citi or BofA in the first place, had G-S been in place.

4) I am not sure how I am a "wealth redistribution type", whatever that is, but it doesn't really matter.

1) Which is what I was said. I don't see how GS being in place would have prevented the crash, unless you are telling me that these mortgage backed derivatives wouldn't have been created and the RE market wouldn't have gone on it's run.. i don't see how GS would have prevented either.

2) I'm aware, but the fact that deposits were being used for speculation/trade isn't solely what caused the crash, or even the primary reason. The i-banks like Lehman and Bear didn't have depositors, yet they were still heavily leveraged.

3) Agreed.

4) I thought you were but i could have you confused with like, tinfoil, or one of those guys. my apologies IF you aren't a 'fair share' obamanite.

5) edit: how do you figure AIG wouldn't have 'needed' to be bailed out?

 

[denner]

Just to add to this discussion...

IMO, the repeal of GS created the "arm's race" that set the stage for the 2008 crisis. Combine the consolidation of many regional banks with the supreme confidence of TBTF bailouts "i.e. 1998" and you are left with alot of bad actors.

 

[denner]

Quote from PiggyBank:

1)

2) I'm aware, but the fact that deposits were being used for speculation/trade isn't solely what caused the crash, or even the primary reason. The i-banks like Lehman and Bear didn't have depositors, yet they were still heavily leveraged.

But think about it for a minute. One of the main reasons WHY those two i-banks were such a problem was because their counter-parties were the TBTF institutions with the depositor's funds at risk. You don't think that was their ultimate bluff?

The "cross-contagion" of even one bad actor with massive leverage that could infect every other institution that has exposure to them...

 

[Arnie]

Quote from Martinghoul:

Like I said in some old threads, this is a very typical "bankster" meme that allows them to eschew all responsibility for the crisis. It's popularized by people like Charles Calomiris, Edward Pinto, Peter Wallison and some others. There's an over-abundance of evidence that demonstrates that blaming the CRA is nothing but an attempt by the financial industry lobby to return to business as usual ASAP. It's also reasonably clear that the repeal of Glass-Steagall had a lot to do with the crisis. The "blame the CRA" mis-direction has a lot of fans on these forums.

Like yourself, I applaud Warren's attempt to do the right thing and hope she succeeds.

Name one bank that went under due to their investment banking side imploding.

 

[jem]

Quote from Ricter:

The fly by night operator, the quick buck guy, doesn't care about lost future sales and doesn't expect to get caught and brought to justice anyway, so a thousand kids poisoned by tainted Chinese milk is not worth achieving ideological purity. Random checks, informed by good risk assessment (which is the method now) is worth the money spent.

this is a very difficult calculus for me... because health and safety is a proper role of govt... but where does govt interference stop.
California dems have really gone too far and screwed up the state... but I also know that if not for CA and other states instituting take you company down type tort laws... companies were selling exploding sodas... wheels that disintegrated... gasoline trucks that exploded.

It is a calculus and even the left knows they have to stop legislating at some point.

For instance George Will once noted on this tort safety issues... most of the serious accidents happen with left had turns... so why not just ban left hand turns.