Glass-Steagall Mobilization "Impressive, If Not Adequate"
May 20, 2012 • 1:12PM

Lyndon LaRouche characterized the explosion of Glass-Steagall developments in the wake of the JP Morgan Chase blow out as "impressive, if not adequate" today, adding that the public mobilization spreading through Congress and among economists and analysts is also supported by developments not yet in public view.

There were two new signers to Rep. Marcy Kaptur's H.R. 1489 today, Edward J. Markey (D-MA), and Karen Bass (D-CA), in addition to Dale Kildee (D-MI) who was added yesterday.

Support for Glass-Steagall continues to be coupled with ridicule of Dodd-Frank and the Volcker Rule as intentional failures, meant to serve Wall Street. The widely-read Business Insider today ran a piece by Sy Harding which noted that after the 2008 crash, "The reinstatement of the Glass-Steagall Act was debated. Although it had been proven to work well for many decades, it was beaten down. A watered-down Dodd-Frank reform bill was eventually passed. The so-called Volcker Rule was adopted.... But under pressure from Wall Street, regulators decided to delay implementing most of even the watered-down new regulations.

"However," the article continues, the JP Morgan mega-losses were a "wake-up call. Congress and regulators have been oddly quiet in reaction, since the news potentially throws a monkey wrench into their plans to scuttle even the Dodd-Frank financial regulations after the elections. Come on people! Wall Street has been ranting for three years about the excess regulations that were being proposed. The truth is that even the harshest of the proposals would be far short of the regulations that were in effect, and working very well, right up to the 1999 repeal of Glass-Steagall."