by Pam Martens and Russ Martens
Wall Street on Parade
Breaking up the dangerous banks on Wall Street that are gambling with their taxpayer-backstopped insured deposits by restoring the Glass-Steagall Act is now a part of the newly adopted platforms of both the Democrat and Republican parties. Under a restored Glass-Steagall Act, banks holding insured deposits would not be allowed to affiliate with Wall Street investment banks and brokerage firms that regularly underwrite risky securities and engage in trillions of dollars of derivative gambles. It would effectively put an end to the idea that these complex banks are too-big-to-fail because the life savings of small savers holding insured deposits in the bank would be at risk.
Bernie Sanders’ supporters pushed the Democratic Party to include the provision in its platform. Today’s media spin is that Trump & Company added it in hopes of picking up some Sanders’ supporters who have vowed not to vote for Hillary Clinton.
What has been lost in the frenzy of political posturing is that there already exists a bi-partisan bill in the Senate to restore the Glass-Steagall Act. It’s called the “21st Century Glass-Steagall Act of 2015” and is co-sponsored by progressive Senator Elizabeth Warren and Republican Senator John McCain among others.