Wall Street and the City of London Are Terrified by Glass-Steagall Momentum
April 13, 2017 (EIRNS)—Wall Street and the City of London are terrified of the pro-Glass-Steagall momentum after the meeting among Gary Cohn and the U.S. Senators, and the bipartisan bill introduced in Senate the next day. Three attacks on Glass-Steagall, one milder (Financial Times), the second one more open (New Yorker) and the third one obscene (Heritage Foundation/Forbes) are exemplary of the panic that this time it could be serious.
John Authers in the Financial Times says that a return to Glass-Steagall is "invasive and difficult." And by the way, the problem was the commercial banks giving out subprime loans. Nicholas Lemann in the New Yorker asks:
And then he goes into sophistries, claiming that it would give government protection to too-big-to-fail institutions!
Norbert J. Michel in the Heritage Foundation and Forbes pulls together all possible lies, and then attacks deposit protection: "Federally backed deposit insurance creates terrible incentives in the banking industry."