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The UK Is Preparing To Return To "Glass-Steagall"
In a very surprising move, the AP reports that the UK finance minister George Osborne has announced a major overhaul of British banks, the key provision of which will be the separation of bank retail and investment business "in order to help avoid another financial crisis" - an act which is in essence a reintroduction of Glass-Steagall. What is stunning about this development is that the banking cartel has allowed the UK to get so far as to effectively repeal Gramm-Leach-Bliley, the act that ended Glass Steagall and allowed unprecedented deregulation to convert formerly safe banks into the mastodon, 50x levered, TBTF hedge funds they are now. And if this is happening in the UK, how long before Europe adopts the same overhaul in order to placate its austerity-ired population, and deflect populist anger where it belongs: the banking oligarchy which continues to defy nature, and the simple laws of bankruptcy, and demands that there is never even the smallest impairment of senior claims. All this may very soon be changing.
From the AP:
Osborne backed the findings of the government-appointed Independent Commission on Banking (ICB) which earlier this year called for a "ring-fencing" of retail businesses.
"Today I have told the Commission that the government endorses both these proposals in principle... We will make these changes to banking to protect taxpayers in the future," he said.
Osborne said he had taken the decision bearing in mind what he said was a British dilemma.
"As a global financial centre that generates hundreds of thousands of jobs, a successful banking and financial services industry is clearly in our national economic interests," he said.
"But we cannot afford to let it pose a risk to the stability and prosperity of the nation's entire economy."
On Zero Hedge, as well as on any other thinking financial websites, the repeal of Glass Steagall has been excoriated to the core, as the gating factor that allowed the financial collapse of 2008. It seems others share the sentiment.
The practice of banks using money from their retail arms to fund
investment operations has been widely blamed as a major factor behind
the global banking crisis.
Additionally, Osborne seems to mean business by putting Northern Rock up for sale:
After months of speculation over Northern Rock, which was nationalised by the previous Labour government, Osborne said the coalition had to "clear up the mess of the past".
"I can announce tonight that on behalf of you the British taxpayer, I have decided to put Northern Rock up for sale," he said, adding that they could "at least get some of our money back."
He did not set a price but the BBC said the government planned to sell it to a single buyer for about £1.0 billion (1.14 billion euros, $1.62 billion), rather less than the £1.4 billion it cost to bail out the lender.
Potential buyers for Northern Rock could include Virgin Money, the Coventry and Yorkshire building societies, investment groups NBNK and Olivant, and Tesco Bank.
Northern Rock plunged into crisis in mid-September 2007 when its exposure to the US-triggered credit crunch forced it to seek emergency assistance from the Bank of England, sparking the first run on a British bank in recent history.
To avert financial meltdown, the government agreed in December 2007 to guarantee all customer deposits and then later nationalised the bank in February 2008 to prevent its collapse.
The lender was broken up into two parts last year, forming a so-called "good bank" that will be up for sale -- and a "bad bank" management company to run down the remaining toxic assets.
Osborne, who has been a regular critic of the banking cartel did not stop there.
He also warned that Britain's economy faced tough challenges.
"Failure to tackle the imbalances during the seven years of plenty before 2007 threatens seven lean years thereafter," he cautioned.
"Storms from the world economy are likely to stir up the waters through which the UK economy must pass as it too adjusts to a new equilibrium with lower levels of debt and a rebalancing from domestic to external demand.
"We have to pass through turbulent waters. But we have set the right course," he added.
In an interim report published in April, the ICB also recommended that banks set aside more capital to avoid future state bailouts.
We wonder just how many mbillions in bribes will it take for our own corrupted politicians to do the right thing and follow the UK's lead in repealing the worst law to have ever been conceived by the banking lobby. Our guess is: a lot. Which is why we are not hoping that this one true means to begin fixing the system will ever come to the US. Instead, America will have to deal with the aftermath of that bloated of worthless legislation known as Dodd-Frank for years, which will likely never be instituted in our lifetimes courtesy of banks' ongoing and successful attempts to delay implementation, preferably until infinity (and not in the Norwegian sovereign wealth fund sense).
h/t Reboil Room
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One cool result would be to see some prosecution of the fraud that was perpetrated, and see some bankers who knew they were selling toxic garbage, and lying about it, frogmarched off to prison. Guess that is not going to happen though.
It would be "cool" whatever that is.
But it's not going to happen.
Welcome to QE~Infinity.
The peasants are going to have to get used to the new and improved terms of trade.
Wow it's about as surprising as a Boer pledging allegiance to the crown. Or Gandhi. Or Thomas Jefferson enjoying East India Company tea. I guess some people want to survive, at least this current mess, by implementing (as in REimplementing something tried and true). Glass-Steagall
Just goes to show you, no matter the country, there are always people that want to do the correct thing inside them all.
Of course, I have to say, I'll believe it when I see it. But to speak such heresy openly upon imperial monetarism (which is the bedrock of their monarchy) shows that those kicking the can have a dead leg and realize that if the goal is Miami, and you're still in Long Beach, CA., that you better try something else. That and the monetary collapse as viewed from the inside must be thought as very near indeed (and inescapable). Thanks Iceland, Greece, Ireland, etc. For at least getting us this close so far.
Let's copy U.K...err.. ourselves...err sanity and force through H.R. 1489, the return to prudent banking act, i.e. the reinstating of Glass-Steagall. People from both sides of the aisle have signed onto it, it's bi-partisan if that's supposed to mean anything. We don't need one side credit, we need as Americans to MOVE FORWARD together as Americans, as human beings.
Then we can ACTUALLY work on moving the human race forward, and out-thinking and out-innovating by finding substitutes for dwindling resources. Mag-lev, Fusion, Fusion Arc, NAWAPA, desalinization, so on and so forth. A chance at a future. A chance that will be capitalized on. That must be exported to third world countries.
Also remember, if people still want to pay for bullshit, some people will gladly keep accepting the free gift. So he who defects first, wins at least a ribbon. A world (or biggest portions of it) that defects, becomes free men/women.
We CAN push through Glass-Steagall, just not without people actually knowing, actually demanding, and actually acting like Greece-ish.
Although I would have to think upon getting near to its implementation the markets reactions would force our hand. At least it's a simple bill and idea, we've had it in our past, and we have H.R. 1489 ready. (thus it could be passed tomorrow if need be). RIght now they have been hiding it's debate amongst the msm, but at some point, especially with a crack like this in the U.K., it cannot be that way forever.
Until then, or until utter collapse up/down/both (which also would thrust Glass-Steagall into the spotlight), one would not disagree with ZH in what the staus quo and all it's fiat money would focus to protect....it's golden goose on the backs of others. It's up to US to get it implemented HERE. We all know TPTB around the world will do anything to stop it including their left nut. (and then steal ours)
That said, George Osborne should watch his back, as (upon implementation) there are about to be many broke (or much less separated in wealth from the common food stamp folk....so to THEM broke) who will be mighty pissed off, as well as a lot of genocidal theorists of sophistry at their lack of economic separation and control over other people. The two words that come to mind is David Kelley. I sure hope not.
Go G.O.
Glass-Steagall for the world, but as American, we need to pass it here before exporting it...and in time so U.K. doesn't stuff us with a pig in a poke.
Funny thing is, if U.K. passes this, it would immediately implode the entire monetary touching world (so basically everywhere) built in its imperial image. So, surf's up, there's a financial tsunami coming. Let's be Americans, not imperial monetarists that even the U.K. might ditch. Unless we like wearing other people's dirty underwear as a rule.
We can force it through, if we don't, someone else will collapse the house of cards on us. (with advance notice of some sort)
What 2012 candidate supports it? Didn't we find out in the republican debate? No. Will Obama? ROFL No. Koch-head brothers? No.
But maybe I'm getting ahead of myself in that 2012 is after the Not.In.H.M.S. Glass-Steagall is set to be launched, so what 2012 candidate is ready to really utilize the tenants inside Glass-Steagall to push the righted ship forward? At least that's a much better debate....and an actual change in it.
Impeach Obama if he won't implement it. Recall any candidate of any stripe who joins the idiot in keeping the bankster status quo alive. Force your congressman/women to answer what their position is. Mass Strike against the idiots. Make Summer of 2009 look like a girls' scout picnic.
There's a glimmer of hope, and it's from the U.K., amazing. I'll take it.
Something old. Someone New. No more borrowed shit until we're blue.
Glass-Steagall
(did china force bilderberg's?)...Very strange...perhaps the oligarchs see that it is inevitable, so if they pass Glass-Steagall and not implement it in full force and spirit, the oligarch will keep some of their riches? Perhaps to fight another day?
Hard to tell, but this IS the law that rights the ship....if effectively implemented. We'll see. But this would be monumental, because the oligarch could lose control of the situation since this is basically a huge shift in the structure. Plus some of them might think, it'll only bankrupt some of us, one more grand game amongst them as it settles in place? Some of them remain rich vs. all of them strung up?
Hard to say. But this would be handing the keys over, lets make sure we take it to the right destination. American Credit System utilizing Glass-Steagall banking standards would be the next fight...i.e. who replaces the federal reserve. Credit Creation vs. Debt is a no brainer.
Still must educate what to do with this potential new freedom, if passed here in U.S., and make it certain to spell out, write it down, take a picture, on what not to allow again. One scame is creating the debt, another is forcing people to pay. This just gives the people the right to destroy the 2nd part. It's a start. It rights the ship, if enacted.
Fucking Glass-Steagall (it hurts the banksters pricks)
Fucking Glass-Steagall (it hurts the banksters pricks)..
Seems to have gone smoothly and pleasantly for those pricks.
LOL, I'm in the UK and can immediately see that this Tory plan is doomed.
Separation won't work, leakage is guaranteed e.g. loopholes like corporate loans to investment bankers and Hedge funds.
I suggest these ways to stabilise consumer, corporate and lender debt:
Don't hold your breath on any of those.
They are good ideas. Although, the simpler option is to let them all do whatever they want. If they fail, they go under and nobody recoups a penny. Also, no more subsidies or subsidised industry. Darwin had this all figured out, but we seem inept. So be it. We'll figure it out or we'll be oil for the next species to have a shot.
As Scooby would say:
Jamie & Lloyd, America's Criminal Fraudster Shoe Shine Boys...
Gimme a shine Jamie...
Kudlow is a sell out. raising the debt ceiling is a joke!
He is not a sell out ... he is profiting big time from the system ...
what are you talking about?
yep. BTW someone is messing with Z/H. I am getting reposts and that site down screen intermittently. My updates are all good and plenty of security.
I thought that was weird!
Server deja-vu?!?
I like your post's keep up the good work! YEN CROSS.
I like Larry, and he means well even if he is friends with a bunch of crooks.
well at least people are learning ... most for the first time what is and what the importace of stegal.. even if the banks will find a way to weasel out of this (most likely) at least the sheep get an important history lesson
No more bank- Insurance company collusion! Period!
De-Citigrouped.
Well, someday maybe.
The only threat to the oligarchy is debt restructuring, a.k.a flip your middle finger as you burn your debt obligations ... other than that the flow of money from the bottom to the top will not stop, just slow.
Can anyone advise me, please, on buying silver coins/rounds?
Lowest buyback % under delivered price?
Lowest markup over spot?
No.
"
by Ponzi Uniton Thu, 06/16/2011 - 20:03
#1376212
Can anyone advise me, please, on buying silver coins/rounds?
Lowest buyback % under delivered price?
Lowest markup over spot?"
saturday is the silver options expiry the bankers will probably try to run down silver or keep it here (its consolidating pretty well at 35.5) so saturday will most likely be a good day to buy..
at this point (with the high premiums) i would try to buy silver dimes and lots of them..
i think they are much lower in premiums and are small to barter with than a 1oz silver mapel leaf..
search your area for coin stores, i usually find its much cheaper (less premium added to spot price) as many of the coin shop owners/jewerly shops (much worse) havent a clue as to silver + the economy +etc.. remember u need a good 6 months of food/water/ defence (a little is better than nothing
As I said.
No.
Don't get too excited. At the moment this is only a proposal... one that will be re-visited in September!
The whole friggin' world might collapse before then.
Good point! FOG. One day @ a time.
i posted some comments on that "i am america video" im xkamikaze78
my silly rant may make a few of you laugh.. but some people listen
sheep awake one by one
ahh for the hell of it ill make it easier.. i didnt even bother to read far into these two arguing lol so w/e
---------------------------
Disable automatic updatesyou all make me sick.. its not even hard to find out wtf is happening.. its so obvious a retarded monkey would throw his feces in the fan just to see what its gonna look like... a damn? shame fucking wilfully ignorant bunch of asstrolls
PhoenixLoneWolf.BlogSpot.com
ps? fuck you
xkamikaze78 2 minutes ago@MrILoveYeshua your all idiots ... ben bernake is? gonna hyper inflate us to death and starvation when qe2 ends and we beg for another round (the nail in the coffin)
everyone knows somethings wrong..? no one does a damn thing... and so i sit here and wait for everything to unfold.. at least ill have a few gallons of water to keep me from dying of thirst .. food nah ill just SMH at you idiots looking for water and i live 27 days longer w/o food good fucking luck.. jackasses
xkamikaze78 5 minutes ago@MrILoveYeshua u mean? this one?
This has been flagged as spam hide
"when we take this? war serious enough and? teach u a lesson? in partiotism"
And that, is the Tea Party in a nutshell, right? Warmongering, hyper-"partiotism" (sic), xenophobia, and just a pseudo-bullying kind? of attitude. Pathetic.
forestnomad 8? hours ago
are you mentally retarded? nahh your just paid by the gov because you want us to feel as retarded as you... your hurting the american people spreading willful ignorance
xkamikaze78 11 minutes ago@forestnomad By the way there are three different ways for anti-americans to travel:
1. you take a? camel (which will take you long)
2. you use the flying carpet (that will take you around 100 years)
3. ORIENT EXPRESS (the quickest way)
PS: If your comments would have been logical and smart, people would not? have had you marked as SPAM! Think about it.
MrILoveYeshua 1 hour ago@forestnomad Patriotism and Christian-Jewish beliefs are the greates weapon we have. If you do not like USA, if you its xenophobia, then I simply would suggest you to find another place. You could go to? iran, northkorea, saudi arabia or venezuela. No one will stop you from doing so. America is a free country, go ahead and move to a country you like, BUT NEVER TRY TO CHANGE OR SHAPE OUR STATE ACCORDING TO YOUR? BELIEFS B/C WE WILL FIGHT YOU AND YOU WILL LOSE!!!
MrILoveYeshua 1 hour ago"when we? take this war serious enough and? teach u a lesson? in partiotism"
And that, is the Tea Party in a nutshell, right? Warmongering,? hyper-"partiotism" (sic), xenophobia, and just a pseudo-bullying kind of attitude. Pathetic.
forestnomad 8 hours ago@forestnomad U will see who will go down, when we take this war serious enough? and teach? u a lesson in partiotism
MrILoveYeshua 1 day agoRespect is earned. We can all read charts, and make rational decisions. You can as well!
Got any trading ideas? I'm still short E/J. I did not junk you btw.
how long before Europe adopts the same overhaul in order to placate its austerity-ired population, and deflect populist anger
Don't hold your breath, Deep Capture of the political class is will have to be released by the bankster class. Beware these gifts.
Here is an interesting point.
Where would the price of essential commodities be if Glass Stegall had never been taken away ?
Care to guess....ie 30 to 50% lower prices for most commodities.
I have no doubt about this.
Dimon, Blankfein....the world would be much better off ....without these type of people.... ....
I take the clinical view that the world is better off knowing the capacity, proclivity of these types of people.
Would only the wreckage they create be simulations: not so real.
Every government is run by liars,” independent journalist I.F. Stone observed, “and nothing they say should be believed.”
I really don't give a shit about Glass-Steagall or GLB. Just liquidate the insolvent pieces of shit, and prosecute the fraudsters. Problem solved.
Oh, and end the fucking fed, IMF, BIS, and all the central banks.
Free banking, BITCHEZ.
This is most likely the plan as proposed by Mervyn King to divorce the needs currency from the wealth currency. Retail banks will be non-fractional and non-profitable defacto public institutions.
The wealth-building side of the divorced currency coin will have a small percentage of gold backing, be extremely difficult (read penalties) to liquidate with great limitations.
Nothing new here as liquidity of savings will be sacrificed in exchange for so-called security.
Dave Harrison
www.tradewithdave.com
While a decent start, Glass-Steagall is a red herring. The problem is using deposits to fund dealers and speculators, not just affiliated ones. Push it out of the depository and they'll just fund it via leveraged loans, repo, total return swaps, credit derivatives, liquidity guarantees and whatever the next "innovations" are. If it's bad to do it for affiliates, it's bad to do for anyone.
You're line of thinking is what got us in this mess.
Either you're misunderstanding what I'm saying or you can't be serious. The funneling of Fed and FDIC backstopped (therefore, practically free) money in depository institutions to anyone willing to take a thin slice of equity in a financial asset had nothing to do with getting us into this mess? Removing all capital constraints on that activity through innovations such as CDS from AIG and other monlines, and liquidity guarantees to ABCP conduits had nothing to do with it?
Let the free markets determine the cost of capital - taxpayers never intended FDIC insurance and discount windows (both disingenuously said to have been created to protect depositors, but in reality are just there to protect against bankers losing their cheap source of funds) to go towards providing cheap leverage to hedge funds, leveraged buyout firms and securities dealers.
So basically you want to go to pre-depression banking (which mind you lead to the depression), and let your money and assets evaporate when a bank fails. FDIC was created out of a necessary need, just like Glass-Steagall. Remove FDIC and your deposits will never be guaranteedand watch the runs on the banks occur. Atlas Shrugged was a fictitious book based on a fictitious society. Real life is not like that.
Now I see your point. Thanks. I agree that runs are a bad thing. I just don't believe in fixing them by forcing taxpayers to insure drastic and maximized maturity transformation for the benefit of bank owners. Deposits should not be treated as loans to banks ... That's the right way to fix it. Demand money is deposited for safe keeping. Call it a 100% reserve requirement for demand deposits, or call it reserve account deposits like the banks have at the fed. Nobody should expect a return on demand deposits. Earning a return (in a free market) should require taking risk. But the corollary is also true - banks should not deem demand deposits as lending capital. They should pay more for longer term, nonguaranteed funds, like any other business.
Ahem.
Please: Eton, Oxford, millionaire, friends with Cameron, (daddy was a banker, grand-daddy was a banker).
Please, Americans, stop being dumb:
http://en.wikipedia.org/wiki/Odious_debt
The USA used this on Iraq to dumb a shit load of national debt, then fudged it under the carpet so that no-one would notice. No-one in the EU wants Greece / Portugal / Spain to do a decent audit and dump that debt [cough - Ecuador threw out the IMF... who all went to Greece].
This is merely a move to present the current debt as acceptable on the promise of future compromise.
Sheep.
Ahh the good old Glass-Steagall act. The one that should have never been eroded then revoked. We chipped at it, and got the S&L crisis. Then revoked the entire act and had this tiny financial crisis. I say reinstate the act as it was before. It worked well for nearly 50 years.
Really, the UK? Can this be done before Ireland gives the EC the "your're number 1" flag?
Reinstate Glass-Seagall, big whoop. Maybe in 10 years, something will be done.
Weiners Rule! And they are spatula ready.
Never, ever gonna happen. Barclays owns the entire kingdom.
(Owning the Premier League is basically the same thing).
Why the surprise ? Banks in the UK have balance sheets bigger thant the whole of the UK - e.g. RBS. This has been recognised as dangerous.
Can't agree with my fellow UKers - Osborne is the real deal. No U turns on the cuts regardless of Greece/EU mishap. My reading is he has done a deal with Mervyn King and the BoE will print if growth stalls. Fiscal polices will be adjusted to mop up any excess liquidity as lets face it, Osbourne needs every penny right now.
If you know your political history, it was Labour under Blair that courted the Banks/City in 1994 - "the cocktail offensive"
"We will fund you benefits and big government socialism while we deregulate your assets".
Osbourne is a Thatcherite - he is going to want to destroy monoplies to promote competition. This is the oppocite of Labours policies. The big worry in the UK is actually whether the supply side reforms can be executed effectively. Long overdue NHS productivity reforms have hit the buffers, this is a key chunk of the economy.
Putting the Bank of England in charge of macro prudential regs mean putting the foot on the throat of excess lending. The banks hate this, but they have no-where to go.
Another aspect is how this plays out with small business lending, which is off track on project merlin. I would have thought that keeping the cash on the retail side provides capital for that, rather than on the investment banking side which will go in to speculation (commodities) and possibly even stokes inflation (of the wrong sort).
The economic stratergy is not just about blanced budgets / debt repayment. It is about rebalancing the economy - a longer term and even more key aim. This means more exports and less imports. It means less govenment spending and more private sector activity. It means pricing the UK back into world markets that include India and China as competitors. This is all longer term stuff.
By the way - this is not an experiment. It has all been done before in the UK, from the rationing and austerity from the late 1940's to the 1960 (Britains had more food in war than in peace time immediately after) - this was a low interest rate, austere, consumer credit rationed world - to the secondary banking crisis in the 1970s where debts were inflated away.
Of course - none of this is going to be any fun. The mishap of the secondary banking crisis to 8 years odd to work out in full and that was beer money compared to this.
Once again - thanks a bunch Gordon...
So if they really want Glass Steagal, why do they call it "ring fencing" and not complete separation as required by Glass Steagal (aka the way the house of Morgan was split into 2 from which Morgan Stanley was created, a separate management and company with different management and shareholders). This is bunk again, trust the tories (or labour for that matter) to work against the banksters? I got a bridge you might like to buy : )
Read Lord Lawson's immediate response to ring fencing in the Daily Telegraph, and what Barclay's is clainimg as their interpretation of "ring fencing", a concept they pushed through the clueless Osborne's bird brain.
Good idea - lets push the button on UK Glass Steagal right now and see competative advantage in one of the few UK industries we can compete in disappear overnight. Sounds like a bird brain idea to me.
No - better to Phase 1 - "Ring fence" - other countries cotton on and catch up.
Phase 2 - Some slime bank gets caught breaking the rules (e.g Goldman) - Cue "political outrage" followed full blown UK Glass Steagal. Other countries cotton on and catch up.
The problem with the crisis is that it is multi dimentional and complex. This is why the EU is stuggling to contain Greece. If you plunge in and be bold, you could make things worse - but you can't do nothing either.
Actually time is not on the banks side. They have been weakend, and their behaviour has been exposed on a global scale - they are not popular. Better to get a few well aimed slices in first and wait a while before finishing off the job. They have less spare cash for lobbyists also.
Later in the afternoon, Secretary Geithner will meet with the Financial Stability Oversight Board at Treasury. This meeting is closed press.
http://www.treasury.gov/press-center/daily-guidance/Pages/06162011.aspx
Door number 2
Committee on Financial Services Testimony
www.capmktsreg.org/pdfs/2011.06.16_House_Testimony.pdf
Testimony of Under Secretary for International Affairs Lael Brainard Before the House Committee on Financial Services
Who cares at this point, the damage has already been done. This akin to shutting the gate when the horse has already escaped and is about 5 miles down the road.
Comment moved to "Greece On The Verge Of A Precipice..."
Well offer the "Olive Branch".
bulletproof glass stegal
Gorilla Glass (VIA) Corning is a better thought?
Countdown to cries of lost jobs and billions of dollars in business to non-UK banks in 3, 2,...
I'm GBP long and loving it! At least rate rises are on the scope!
Much more effective to do what Steve Keen recommends. Make it unattractive to use debt to speculate in assets.
Really? The UK? the island of speculation?
" if it sounds to good to be true....it probably is'' Anonymous.
Im pretty sure, this is just a window dressing public relations stunt, There will never be an end to rapacious global speculation, London is the capital.
I mean what would happen to International commodities exchange (ICE) in London, after this passes?
Out of business!
They wont allow it.
Meanwhile somewhere in south east asia, pols are rubbing their hands in glee in anticipation.
Surprising only if you haven't been reading the papers for the last 3mos!
Hmm, except we still have fractional reserve banking and The Bank of England acting as free insurance, with the costs passed on to the citizens of the country of course. The City will remain a bloated tick sucking the wealth out of the nation.
The Tories are owned by the banks in the same way as New Labour, they couldn't be more establishment. The only major party which isn't are the Liberals and they are just fucking limp.
It is a testament to the negligent rule of The Party of Evil that this separation was not introduced at the time when the US repealled Glass Steagall. What clearer sign could there have been that banking was moving into the the realms of overleveraging? This was stark staringly obvious AT THE TIME. While New York was hobbled by regulation, then that was the time for London to make hay. As soon as New York was freed to overdo it, that was the time for London to run for cover. It's not rocket science (I know I've been one), but it was clearly beyond the intellectual competence of the One Eyed Fiddler of Kirkcaldy to recognise the obvious.
This is all window dressing and the real problems will not be addressed. Further interesting reading at this superb blog.
http://golemxiv-credo.blogspot.com/
Don't be fooled - this isn't Glass-Stegal by any stretch of the imagination - this is 'pretend Glass-Steagal' because Osbourne is a politician - politicians crave popularity - and Glass-Stegal is widely believed to be the 'ultimate solution to all our problems' - which of course it isn't as Northern Rock (our first bank run since 1600) - was a retail only bank.
What Osbourne is now doing however (which I suspect this announcement was to cover) is now allowing savers to lose money (not an unfamiliar concept in the US)
....and we had our first bank collapse to test it too.
http://www.cityam.com/news-and-analysis/bank-depositors-lose-cash
Now if there is one thing that causes a run on the bank - it's the thought of depositors losing money...
The first run on a bank since Overend Gurney... and who was in charge? Who had recently overhauled the regulatory system? Where should the finger of guilt be pointed?...
...straight at the One Eyed Fiddler that's where.
When it's time to hide your money make sure it's not the same place that they hid the trojan. You don't want your money to end up locked up like Papillon.
http://tradewithdave.com/?p=6999
Dave Harrison
www.tradewithdave.com
Didn't Pappillion place his money in a cigar tube and then insert it up his jacksie?
It would be interesting to see “in essence a reintroduction of Glass-Steagall” in the U.S. Maybe then we would get to find out which retail banks Goldman is actually holding (besides the one in the Cayman Islands) which qualified them for all those government loan guarantees. I keep looking for a Goldman Sachs branch in my region area, but, so far nothing. When I call their New York office to try and open a checking account, they just blow me off.
"deflect populist anger where it belongs: the banking oligarchy which continues to defy nature, and the simple laws of bankruptcy, and demands that there is never even the smallest impairment of senior claims. All this may very soon be changing."
It's OK to be angry at the banks--they are certainly complicit. But the principal culprit here is Congress and government and quasi-government agencies (the Fed, Fannie), who engineered the bubble and have prevented the market from fixing it. Congress has been well-paid for it's services by the Banks, the Goldmans and the Fannies. The problem is that Congress and the agencies have the power to mess things up and to get paid for doing it. Take away the power. Remove most of the problem.