{"id":38233,"date":"2013-07-11T14:01:14","date_gmt":"2013-07-11T20:01:14","guid":{"rendered":"http:\/\/hill-kleerup.org\/blog\/2013\/07\/11\/restoring-sanity-to-the-banking-industry-inconceivable.html"},"modified":"2013-07-16T09:39:13","modified_gmt":"2013-07-16T15:39:13","slug":"restoring-sanity-to-the-banking-industry-inconceivable","status":"publish","type":"post","link":"https:\/\/hill-kleerup.org\/blog\/2013\/07\/11\/restoring-sanity-to-the-banking-industry-inconceivable.html","title":{"rendered":"Restoring sanity to the banking industry? Inconceivable!"},"content":{"rendered":"
On the one hand you have traditional banking services. \u00a0That includes your checking account, your savings account, your business account, \u00a0etc.<\/p>\n

On the other hand, you have your speculative banking services. \u00a0That includes investment banking.<\/p>\n

The Glass-Steagall Act of 1933 required banks to keep those separate — indeed, to keep them as separate companies. \u00a0It was triggered by financial collapses\u00a0brought about by the Stock Market Crash and Great Depression. \u00a0<\/p>\n

The go-go 90s ushered in an era of bank mergers, and that sort of regulatory separation seemed rather quaint and, frankly, insane-profit-preventing. \u00a0So the regulators and Congress started disassembling Glass-Steagall, and banks discovered (a) all those deposits made great<\/i> capital for all sorts of risky investments, and (b) they had become "too big to fail" during the inevitable bubble bursts, because if they went under because of their risky investments, well, it would hurt all those checking accounts and savings accounts.<\/p>\n

So maybe it's about time we set up something to keep the folks with gambling addiction separate<\/i> from the folks watching our personal savings. \u00a0It's crazy, I know, and the chance that the GOP (or some financial-institution-beholding Dems) will pass it are minuscule. But trying to do something is better than accepting an ongoing series of financial boom\/busts due to greed not being so good (for the economy) for very long.<\/div>\n

\n

\n \n <\/div>\n

Warren Joins McCain to Push New Glass-Steagall Law for Banks<\/a>
\n Senator Elizabeth Warren said a bipartisan group of U.S. lawmakers are introducing legislation aimed at separating commercial and investment banking, recreating a Depression-era firewall established by the Glass- Steagall Act but repealed in 1999.\n <\/p>\n

View this post on Google+<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

On the one hand you have traditional banking services. \u00a0That includes your checking account, your savings account, your business account, \u00a0etc. On the other hand, you have your speculative banking services. \u00a0That includes investment banking. The Glass-Steagall Act of 1933 required banks to keep those separate — indeed, to keep them as separate companies. \u00a0It … Continue reading “Restoring sanity to the banking industry? Inconceivable!”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"","_seopress_redirections_param":"","_seopress_redirections_type":0,"_seopress_analysis_target_kw":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[106,35,9],"tags":[],"class_list":["post-38233","post","type-post","status-publish","format-standard","hentry","category-plusposts","category-big-business","category-politics-law"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":29897,"url":"https:\/\/hill-kleerup.org\/blog\/2012\/08\/18\/reinstate-glass-steagall.html","url_meta":{"origin":38233,"position":0},"title":"Reinstate Glass-Steagall","author":"***Dave","date":"Sat 18-Aug-12 10:57am","format":false,"excerpt":"Okay, ignore the rhetoric on the page. \u00a0Jefferson was kind of a jerk when it came to such things, and the commentary is 95% content-free.In the wake of the 1929 stock market crash, which led to widespread bank failure, the Glass-Steagall Act was passed to separate banking activities between commercial\u2026","rel":"","context":"In "~PlusPosts"","block_context":{"text":"~PlusPosts","link":"https:\/\/hill-kleerup.org\/blog\/category\/blogging\/plusposts"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":38440,"url":"https:\/\/hill-kleerup.org\/blog\/2013\/08\/10\/if-banks-are-too-big-to-fail.html","url_meta":{"origin":38233,"position":1},"title":"If banks are too big to fail","author":"***Dave","date":"Sat 10-Aug-13 10:37am","format":false,"excerpt":"The problem is that banks as presently constituted serve two distinct, and conflicting purposes:1. They serve as safe storage and utilization for liquid assets -- checking and savings deposits (personal and business), which are traditionally leveraged for relatively low-risk loan activity for homes, cars, business expansion, etc. \u00a0That's called retail\u2026","rel":"","context":"In "~PlusPosts"","block_context":{"text":"~PlusPosts","link":"https:\/\/hill-kleerup.org\/blog\/category\/blogging\/plusposts"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":23554,"url":"https:\/\/hill-kleerup.org\/blog\/2011\/11\/08\/in-the-category-of-very-rare-cases-in-which-i-agree-with-newt.html","url_meta":{"origin":38233,"position":2},"title":"In the category of "Very Rare Cases In Which I Agree With Newt"","author":"***Dave","date":"Tue 8-Nov-11 5:29pm","format":false,"excerpt":"To hear Gingrich actually suggest that the repeal of Glass-Steagall was \"probably a mistake\" is ... remarkable. Especially given how hard he pressed for it during his abortive role as House Speaker.That someone ever thought it was a good idea to allow the same financial institutions that hold your savings\u2026","rel":"","context":"In "~PlusPosts"","block_context":{"text":"~PlusPosts","link":"https:\/\/hill-kleerup.org\/blog\/category\/blogging\/plusposts"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":15045,"url":"https:\/\/hill-kleerup.org\/blog\/2009\/06\/17\/bank-accounting-for-taste.html","url_meta":{"origin":38233,"position":3},"title":"Bank Accounting for Taste","author":"***Dave","date":"Wed 17-Jun-09 9:43pm","format":false,"excerpt":"So we finally, via Margie's taking action, we've started the process of moving our banking from WaMu (slowly, clumsily, turning into Chase) to a local credit union.\u00a0 Bellco was founded as a credit union in 1936 for the Mountain States Telephone and Telegraph Co. When Ma Bell got broken up\u2026","rel":"","context":"In "Big Business"","block_context":{"text":"Big Business","link":"https:\/\/hill-kleerup.org\/blog\/category\/big-business"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7711,"url":"https:\/\/hill-kleerup.org\/blog\/2005\/01\/14\/cash_registerin.html","url_meta":{"origin":38233,"position":4},"title":"Cash registering to vote","author":"***Dave","date":"Fri 14-Jan-05 7:04am","format":false,"excerpt":"The banking industry processes millions of transactions daily, yet ultimately only \"loses\" $500 per $1 million transacted. In comparison, according to Jim Adler, the quality of the \"voting industry\" is...","rel":"","context":"In "Hi-Tech"","block_context":{"text":"Hi-Tech","link":"https:\/\/hill-kleerup.org\/blog\/category\/hi-tech"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":40947,"url":"https:\/\/hill-kleerup.org\/blog\/2014\/02\/02\/a-clever-post-office-idea-that-will-never-be-allowed.html","url_meta":{"origin":38233,"position":5},"title":"A Clever Post Office Idea That Will Never Be Allowed","author":"***Dave","date":"Sun 2-Feb-14 1:47pm","format":false,"excerpt":"Because the USPS can't change its services without getting congressional approval. And too many in Congress want the USPS to fail.(h\/t +Kee Hinckley)Reshared post from +laurie corzett\"The Inspector General, who conducted the study with the help of a team of experts in international postal banking as well as a former\u2026","rel":"","context":"In "~PlusPosts"","block_context":{"text":"~PlusPosts","link":"https:\/\/hill-kleerup.org\/blog\/category\/blogging\/plusposts"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/hill-kleerup.org\/blog\/wp-json\/wp\/v2\/posts\/38233","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hill-kleerup.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hill-kleerup.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hill-kleerup.org\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hill-kleerup.org\/blog\/wp-json\/wp\/v2\/comments?post=38233"}],"version-history":[{"count":1,"href":"https:\/\/hill-kleerup.org\/blog\/wp-json\/wp\/v2\/posts\/38233\/revisions"}],"predecessor-version":[{"id":38297,"href":"https:\/\/hill-kleerup.org\/blog\/wp-json\/wp\/v2\/posts\/38233\/revisions\/38297"}],"wp:attachment":[{"href":"https:\/\/hill-kleerup.org\/blog\/wp-json\/wp\/v2\/media?parent=38233"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hill-kleerup.org\/blog\/wp-json\/wp\/v2\/categories?post=38233"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hill-kleerup.org\/blog\/wp-json\/wp\/v2\/tags?post=38233"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}