London Shift Toward Glass-Steagall
Hits the U.S.A.
July 27, 2012 (EIRNS)—With the July 25 announcement by former Citgroup chairman Sander Weill, that he now believes that full banking separation, à la Glass-Steagall, should be put back in place, a move that surfaced publicly in London in early July, toward reinstating Glass-Steagall in the trans-Atlantic region has hit a new stage. Weill's statement was immediately echoed in Congress, during hearings featuring Treasury Secretary Timothy Geithner. And it has polarized the banking and political community.
Of great note is that both the New York Times and the Los Angeles Times of July 27 had editorials endorsing the Weill proposal, with the New York Times going so far as to apologize for its previous editorial position against Glass-Steagall.
This shift, triggered by the obvious failure of the current hyperinflationary bailout policy to stop a catastrophic financial and economic collapse, opens the door wide to the full recovery program being promoted by the LaRouche movement. Indeed, more than 30 LaRouche activists were in Washington, D.C. last week, pushing for the passage of H.R. 1489 (Glass-Steagall), a new national banking system, and NAWAPA, the massive water project that would immediately create 6 million jobs.
H.R. 1489 now has 78 sponsors—and could easily jump "over the top" in the week before Congress is scheduled to recess.