Well, I’ll be darned!
Might be the only thing I could back McCain on...Glass-Steagall. It will stop the banks from gambling on derivatives with my savings account. The too big to fail banks have no risk, if the gamble fails, the tax payers bail them out.
This is exactly what happened in 2008-2009.
The 2008 housing collapse was caused by LIBERAL politicians who forced banks to give out loans to people who had no job, assets, or money to pay them back.
It’s about damn time! What do you want to bet it go’s down by one vote?
Problems caused by the federal gov't forcing banks to make mortgage loans without regard to ability to repay (because to do otherwise would be "racist.")
Then supposedly as a offset, the mortgage-backed security business arose to spread the risk, along with more exotic financial instruments.
But no matter how it was spread out, it was still junk, and crashed.
So don't blame repeal of Glass-Steagall; it was social engineering that caused the crash.
Tomorrow The Constitution!
Not McCain again...
Not only that, we need to bring back double-liability to banks and investment houses, as in the 19th century.
If a bank made unwise or risky choices, not only were the shareholders in the bank wiped out, they also were liable to still pay their debts after bankruptcy.
Our present system is the worst and encourages not only corruption but leftist-progressive social engineering. The bankers can basically play for free and create all the debt they want as they implicit have the FED and the US Government behind them.
If we can’t get rid of the Federal Reserve, then at least make the banks and bankers highly responsible.
It may have made a bad situation worse, but they still need to deal with the main cause which was the CRA that Clinton put on steroids.
Stopped clocks etc...
But this will never pass. There too many pols in both parties who feed at the trough provided by the Wall Street banksters.
In addition, they need to restore the primacy of bank depositors’ claims on their funds in the event of banks’ bankruptcy, to put those claims ahead of the claims of derivatives counter parties and ahead of the claims of senior bond holders...
Craziness reins in banking...
I also believe that some of the problems started when Investment Banks went from being partnerships to being publicly traded companies. The partners were a little more responsible when it was their own money being thrown around.
> Glass-Steagall was first passed in 1933 but repealed during the Clinton administration, leading many progressives to argue that it contributed to the 2008 financial collapse.
It has also led to many leftists claiming to be conservatives on the internet wanting to bring it back.
Finally a good idea from an unlikely source. The repeal of Glass astragal allowed the investment bankers to play with ordinary depositors money
A that crap about “Chinese walls” between the two sides was just that
I hope this would close the loop hole of 0 down on home loans and such.
That is where the problem resides. Forcing banks to loan money to people with no credit or pi$$ poor credit to walk in, borrow $200K with nothing down for a house and walk out the door because of their skin color is NOT light complected.
Then 5 years later the American Citizen is picking up the tab.
I doubt this bill will fix this problem. We will see.
I’m not fan of McCain, but I hate bankers even more - considering what they did to this country for the past decade. Good luck on this, PUT THEM IN THEIR PLACE.
And sorry, NO! No one ‘forced’ bankers to dish out the hard-earned money of others to deadbeats - THEY DID IT ALL THEMSELVES, and gleefully.
If the government was really forcing them to give money to deadbeats, PLEASE, PLEASE send me a link where the bankers are on record as being forced to do so. I studied the issue real-time a decade ago and NEVER could find a single complaint from a banker. Not once.
Yikes—something I agree with them on!