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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:

"If the Trump Administration and finance’s most celebrated Democratic critics come to agreement on Glass-Steagall, should we rejoice? Not necessarily."

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."