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Glass-Steagall in the Air in House Financial Services Committee Hearings

May 3, 2017 (EIRNS)—For all its loud assertions that the reinstatement of the 1933 Glass-Steagall banking separation law will never pass, Wall Street is fixated on just that possibility.

With good reason. TheStreet.com reported yesterday that "a number of Democrats" on the House Financial Services Committee are now "expected" to propose an amendment reinstating Glass-Steagall to the Republican-drafted Financial Choice Act of 2017 being marked up this week by the committee. Previously, it had been only reported that Rep. Michael Capuano (D-Mass.) intended to do so.

That brief report was buried in a wire cheering simply because House Financial Services Committee chairman Jeb Hensarling had not mentioned "Trump’s Glass-Steagall bid" in his speech to a conference of the Independent Community Bankers of America that day! "However," TheStreet correctly noted, "many" community bankers are favorable to reviving the Glass-Steagall Act.

Not just community bankers, either. The pro-Glass-Steagall website, Wall Street on Parade, chuckled today that more than 300 readers had "pummeled" New York Times writer Andrew Ross Sorkin in angry comments rejecting his latest screed against Glass-Steagall published as a "news article" yesterday.

Meanwhile, Wall Street’s Bloomberg news service is asking just about anyone they interview on anything whether they think Glass-Steagall can or should be reinstated. That included Freedom Caucus Rep. Jim Jordan of Ohio today, who answered, cautiously, that "Everything has to be on the table when thinking about our economy."