Well Glass Steagle ws undone by former Treasury Secretary Paulson, it took him two concerted attempts but he did the deed and we are suffering from it. Our banking system has reached 2/3 the size of our GDP and the consumer is super saturated with debt. This credit cycle is over.
Good post. The demise of Glass-Stegall came about after Citigroup had been in violation of G-S for a year or two. Rather than enforce the law Clinton signed the Graham-Leach-Bliley Act that effectively repealed the last of Glass-Stegall. It was actually Robert Rubin rather than Henry Paulson who helped undo Glass Stegall, not that Paulson is any better. If you’re interested in the topic Charlie Gasparino’s “Sellout” is a good book to read.