All Commentary
Tuesday, December 29, 2009

Proposal to Breakup Banks Gains Momentum


“Lawmakers in both parties, seeking to prevent future financial crises while soothing public anger over bailouts and bonuses, are turning to an approach that’s both simple and transformative: re-imposing sections of the 1933 Glass-Steagall Act that separated commercial and investment banking. A one-page proposal gaining traction in Congress could turn back the clock on Wall Street 10 years, forcing the breakup of banks, including Citigroup Inc.

“Lawmakers in both parties, seeking to prevent future financial crises while soothing public anger over bailouts and bonuses, are turning to an approach that’s both simple and transformative: re-imposing sections of the 1933 Glass-Steagall Act that separated commercial and investment banking.” (Bloomberg, Monday)

Is this part of the Stimulus II?

FEE Timely Classic:
Commercial Banking in a Free Society” by Steve Horwitz