frontline: the wall street fix: mr. weill goes to washington: the long demise of glass-steagall | PBS

This link has been bookmarked by 26 people . It was first bookmarked on 19 Dec 2007, by Bill H.

15 Nov 15

Steve Walker
From our archives: The long demise of Glass-Steagall https://t.co/KlmiKCdrii #DemDebate

DemDebate
14 Oct 15

Barbara Bray
All history/govt classes need to review Glass-Steagall tomorrow - imo ;-) http://t.co/mQqB4OSr9o
21 Jun 15

Toolbar Interesting Topics Politics - Government Imported From Firefox Biographies and Notes on Publishers Others 2203 000 Ave C IE Bookmarks bar Ch 1 Study 4.0 Science 4.02 Social 3.05 Economics Glass-Steagall
04 Feb 14

patriciam95
- . The new law bans commercial banks from underwriting securities, forcing banks to choose between being a simple lender or an underwriter (brokerage).
17 Feb 13

Rick Spilsbury
bailout
09 May 12

Áine MacDermot
RT @frontlinepbs: The long demise of Glass-Steagall -- a history of the act, from the 30's to the 90's: http://t.co/2ya7q4nl

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30 Jan 12

Kathy Gill
PBS timeline/history on Glass-Steagall (impt) http://t.co/TUbfF61g #2012election @BillMoyers, http://twitter.com/kegill/status/163834785058390016

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04 Jul 11

J S
economy fairness gov't umpires
04 Nov 10

Dusty Taylor
banking clinton deregulation economics finance glass-steagal
02 Feb 09

Eapen thomas
In 1933, Senator Carter Glass (D-Va.) and Congressman Henry Steagall (D-Ala.) introduce the historic legislation that bears their name, seeking to limit the conflicts of interest created when commercial banks are permitted to underwrite stocks or bonds. In the early part of the century, individual investors were seriously hurt by banks whose overriding interest was promoting stocks of interest and benefit to the banks, rather than to individual investors. The new law bans commercial banks from underwriting securities, forcing banks to choose between being a simple lender or an underwriter (brokerage). The act also establishes the Federal Deposit Insurance Corporation (FDIC), insuring bank deposits, and strengthens the Federal Reserve's control over credit.

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08 Oct 08

rbrettb
02 Oct 08

Cheryl Colan
A chronology tracing the life of the Glass-Steagall Act, from its passage in 1933 to its death throes in the 1990s, and how Citigroup's Sandy Weill dealt the coup de grâce.

business history glass-steagall economics finance banking pbs documentary
17 Sep 08
16 Sep 08

infora dime
Following the Great Crash of 1929, one of every five banks in
America fails. Many people, especially politicians, see market
speculation engaged in by banks during the 1920s as a cause of the
crash.

In 1933, Senator Carter Glass (D-Va.) and Congr

economics collapse history business glass-steagall
18 Mar 08

chinesejapanese
In 1933, Senator Carter Glass (D-Va.) and Congressman Henry Steagall (D-Ala.) introduce the historic legislation that bears their name, seeking to limit the conflicts of interest created when commercial banks are permitted to underwrite stocks or bonds. I

1933 glass steagall act bank regulation the long demise of glass-steagall pbs documentary finance usa history banking investment bankroll delicious import from ImportDelicious 2016 05 22
19 Dec 07

Bill H
sub-prime
- Following the Great Crash of 1929, one of every five banks in America fails
- seeking to limit the conflicts of interest created when commercial banks are permitted to underwrite stocks or bonds
- In 1956, the Bank Holding Company Act is passed, extending the restrictions on banks, including that bank holding companies owning two or more banks cannot engage in non-banking activity and cannot buy banks in another state.
- n December 1986, the Federal Reserve Board, which has regulatory jurisdiction over banking, reinterprets Section 20 of the Glass-Steagall Act, which bars commercial banks from being "engaged principally" in securities business, deciding that banks can have up to 5 percent of gross revenues from investment banking business.
- In the spring of 1987, the Federal Reserve Board votes 3-2 in favor of easing regulations under Glass-Steagall Act, overriding the opposition of Chairman Paul Volcker. The vote comes after the Fed Board hears proposals from Citicorp, J.P. Morgan and Bankers Trust advocating the loosening of Glass-Steagall restrictions to allow banks to handle several underwriting businesses, including commercial paper, municipal revenue bonds, and mortgage-backed securities.
- Thomas Theobald, then vice chairman of Citicorp, argues that three "outside checks" on corporate misbehavior had emerged since 1933: "a very effective" SEC; knowledgeable investors, and "very sophisticated" rating agencies.
- The Fed also indicates that it will raise the limit from 5 percent to 10 percent of gross revenues at some point in the future.
- In December 1996, with the support of Chairman Alan Greenspan, the Federal Reserve Board issues a precedent-shattering decision permitting bank holding companies to own investment bank affiliates with up to 25 percent of their business in securities underwriting (up from 10 percent).
- This expansion of the loophole created by the Fed's 1987 reinterpretation of Section 20 of Glass-Steagall effectively renders Glass-Steagall obsolete. Virtually any bank holding company wanting to engage in securities business would be able to stay under the 25 percent limit on revenue
- The transaction would have to work around regulations in the Glass-Steagall and Bank Holding Company acts governing the industry, which were implemented precisely to prevent this type of company: a combination of insurance underwriting, securities underwriting, and commecial banking. The merger effectively gives regulators and lawmakers three options: end these restrictions, scuttle the deal, or force the merged company to cut back on its consumer offerings by divesting any business that fails to comply with the law.
- After 12 attempts in 25 years, Congress finally repeals Glass-Steagall, rewarding financial companies for more than 20 years and $300 million worth of lobbying efforts. Supporters hail the change as the long-overdue demise of a Depression-era relic.
  - Oct-Nov 1999
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