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anything will be hugely disruptive to impose
this new glass steagle among other things that he says could be a result he
is
it would really hurt credit creation which obviously in 10 would hurt the
economy what you pay for example to that
you know that was pretty much what the banks were saying back in 1932 and 1933
they kept saying no no no to going on steagle the race
all kinds of objections to it and they kept
hammering away at it because they wanted to be able to get
access to those deposits in order to feel more speculative trading
and what this says is now we hand do that
if you're going to have FDIC insurance you're going to have savings accounts
and checking accounts thing really do have to be walled off
remember we have fifty years
following the passage of glass steagle in which we had
a tiny number a bank failure
special boom and bust cycle from 1797 to 1933
went away and in that period of time
we build a stronger robust middle-class
what happened is we started chipping away
and part of a chip thing away a fat was to save loadout
the bank's with more and more Wis kept the more integrated and let them get
bigger in pics
and what happened we were in the position of having to bail them out when
they got into big financial trouble senator I will push back till
on the relative security that you're portraying glass steagle to have given
us because
confidential Illinois in the early eighties
when seventh largest bank in america he hath failed
almost set of base the another major banking crisis
shouldn't we just told the american consumer that no matter what we do
there will be bank boom-and-bust cycles
no matter what the laws and regulations you can't protect
every now bat is just wrong why
look at the history I ministry where frills it was bothering me
yeah it does feel nice is to now from 1797
to 1933 the American banking system crashed about every fifteen years
in 1933 we put good performs in place
for which glass steagle was centerpiece and from 1933 to
early nineteen eighty that's a 50-year period
we don't have any effect none we kept the system's steady
months ago sorta and it was only as we started
deregulating you start hitting the S&L crisis
and what did we do we deregulated some more and then you have long-term Capital
Management
at the into the nineties and what did we do is a country this country continue to
deregulate more
and then we hit the big crash in 2000 8 you are not going to defend the
proposition
that regulation can never work locations
regulation ever work senator but by far and away and I agree there were fewer
bank failures
in that time after class day going for a question of the big ones
90 by calling all in all it was the seventh biggest bank and i cant
bail fifty years to get been sent to your around here
306 plastic or glass steagle would not have prevented the financial from
all by itself that's absolutely right but what glass steagle can do
is it can wind saw more of the risk out of the system
he can help laying down the signs of the largest banking institutions don't
forget
you say it there was too much concentration in the banking industry
in 2000 8 now here we are in 2013 and the big four
are 30 percent bigger that puts too much risk back in a similar to the way the
there's other ways above shrinking them obviously
with all due respect at every report I've read every person I've spoken to
says that there's a very very very slim chance that the this even possible
well let me put it this way if you don't fight for it the chances r0
and remember how my partners are in this one I've got john mccain standing with
me I couldn't ask for a better fire
week
up Maria Cantwell we've got angus King we've got a democrat or republican
and independent all people who regularly brigades
you know what the prospect Rd the house has voted 37 times too
you know auto on Obamacare to
to now funded and I mean is this any different
may be making a statement but haven't we want congress to do things that I save a
chance have
happening in and become law this seems like more the same
gonna not ok but just to say you know I remember
going on television multiple times including here
when I talked about the Consumer Financial Protection Bureau
when the big banks were spending more than a million dollars a day lobbying
against it
and when everybody Tom you'll never get that thing
3 why are you even try the chances of passing that
are slim to none and it look around we now have
a good strong Consumer Financial Protection Bureau it's recovered a half
a billion dollars
for families who got cheated it's out there working on behalf of military
families on behalf of seniors on behalf
students put up an agency cuz we got fight
fought for I actually believe in