Renewal Of Glass-Stegall "Under Discussion" In The House
A month ago Zero Hedge dubbed Gramm-Leach-Bliley the worst Bill ever passed. Its passage, coupled with a bunch of insane money printing leprechauns, presaged the ultimate collapse of Lehman, and was the main reason why capitalism nearly died last year (and why contrary to all you hear, is still in critical care). Yet from mere grumblings a month ago, the chorus of voices calling for a repeal of G-L-B, and a renewal of Glass-Steagall has reached a crescendo, and today Majority leader Steny Hoyer said that the renewal of the Glass-Steagall act was a distinct possibility.
The U.S. House is considering
reinstituting the Depression-era Glass-Steagall Act, which
barred bank holding companies from owning other financial
companies, Majority Leader Steny Hoyer said today.
A renewal of the 1933 law “is certainly under discussion”
by House members, Hoyer, a Maryland Democrat, told reporters in
Washington. The Glass-Steagall law was repealed in 1999.
Hoyer made the comments when asked whether Congress and the
Obama administration could do more to persuade banks to make
more business loans to get credit flowing into the economy.
“As someone who voted to repeal Glass-Steagall, maybe that
was a mistake,” Hoyer told reporters.
The repeal removed a regulatory obstacle to the $46.4
billion merger of Citicorp and Travelers Group Inc. to form
If this bill has even a snowball's chance of hell in passing, look for the crash in financial stocks and all high beta names to come faster than Barack Obama's next TV appearance.