Yeah I can recite all the reasons to the contrary but I would rest better at night with Glass Steagall back in force.
“...but I would rest better at night with Glass Steagall back in force.”
Tell me about it. I don’t know how many times we need to keep learning the same damn lessons, which are:
1) A huge number of Americans (and others) will borrow money if it’s available to them, regardless of the consequences.
2) Virtually all bankers are HAPPY to lend them that money, as it means big-time commissions.
To put it another way, while I like ‘free markets’ and libertarian ideas (other than when it comes to protecting national security assets), I don’t think that ideal has any place in banking - not if a country wants to have a healthy economy.
Correct me if I’m wrong, but Glass-Stegall covers US Banks and Foreign Subsidiaries operating in the US....Deutsche Bank’s problems are from non-performing loans in Europe and other places, plus huge investment bank problems, most of which are not covered by Glass-Stegall.
But 15-20k US Employees could be out of work on Monday which will be a problem...
As someone else pointed out, the European Banks never recaptialized after 2008 and did not write down or write off their bad loans, hoping to muddle by.....in Deutsche Bank’s case this has caught up to them.
Absolutely! The repeal of Glass-Stegall allowed investment banks to gamble with their depositers money.