170 Economists and Financial Experts Back Sanders’ Policy on Glass-Steagall
Jan. 15, 2016 (EIRNS)—One hundred and seventy prominent economists and financial experts from more than 100 universities and other institutions issued a letter called, “Economists and Financial Experts in Favor of Sen. Sanders’ Wall St. Reforms,” in which they not only vigorously call for reinstating Glass-Steagall and other Wall Street reforms, but also explicitly criticize Hillary Clinton’s stand on the banks.
The signers, including former Labor Secretary Robert Reich, University of Texas Prof. James Galbraith, Dean Baker from the Center for Economic and Policy Research in Washington, DC, former U.S. Congressman Brad Miller (D-NC), and William Black, University of Missouri-Kansas City, say in the letter:
“In our view, Sen. Bernie Sanders’ plan for comprehensive financial reform is critical for avoiding another too-big-to-fail financial crisis. The Senator is correct that the biggest banks must be broken up and that a new 21st Century Glass-Steagall Act, separating investment from commercial banking, must be enacted.
“Wall Street’s largest banks are now far bigger than they were before the crisis, and they still have every incentive to take excessive risks. No major Wall Street executive has been indicted for the fraudulent behavior that led up to the 2008 crash, and fines imposed on the banks have been only a fraction of the banks’ potential gains....
“Secretary Hillary Clinton’s more modest proposals do not go far enough.... they leave intact the titanic financial conglomerates that practice most shadow banking.... Given the size and political power of Wall Street, her proposal would only invite more dilution and finagle.
“The only way to contain Wall Street’s excesses is with reforms sufficiently bold and public they can’t be watered down. That’s why we support Senator Sanders’s plans for busting up the biggest banks and resurrecting a modernized version of Glass- Steagall.”