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Pro Glass Steagall Counterattack
27 April 2017
PRESS RELEASE EIRNS—It is notable that there is not only a spate of hysterical articles attacking Glass Steagall, but there is an increasing number of articles demanding Glass Steagall. In the Daily Reckoning yesterday, author Craig Wilson does an effective job of summarizing the case. His headline takes aim at a recent article by William Cohan, in the New York Times/Dealbook publication, which is a diatribe against the Trump Administration’s defence of Glass Steagall. His title is "Ignoring Glass-Steagall, A Policy for Disaster". He starts
Wilson goes on to summarize Nomi Prins’ arguments in her book "All The Presidents Bankers." What Prins points out is that Sandy Weills’ taking down of Glass Steagall in 1999 led to, by 2008, Citibank’s need for a $32.1 billion bailout. (So much for the argument that the taking down of Glass Steagal had nothing to do with the crisis.) On top of that, Citibank was caught in a totally illegal scheme to hide toxic assets. Williams points out the total of the tax payer bailout by 2008 led to over 2.5 trillion in bailout for the To Big To Fail Banks. In what seems an unbelievable figure, there was pledged to the bailout 16 trillion dollars! Hard to believe, but this statistic was gleaned from the one time audit of the Federal Reserve. Wilson also documents, again from the Federal Reserve Office Of Financial Research, that the 6 largest banks are at least 35% bigger and more bankrupt than 2008! The article ends with a quote from David Stockman, former Budget Director under Ronald Reagan:
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