Showing his continued proclivity to bend over to protect Wall Street and the Obama Administration, Barney Frank gave an interview to The Daily Beast to defend the fraudulent Dodd Frank bill (and the never-to-be-implemented Volcker Rule) in the face of the Morgan revelations, which demonstrated to one and all that absolutely nothing has changed as a result of Barney's carefully structured defense of the Casino Mondial.
In the midst of the article, interviewer Eleanor Clift said: "Some people say we should just reimpose the Glass-Steagall Act. It seems like a neat, easy solution."
Barney's response: "The Volcker Rule is Glass-Steagall updated. There was no such thing as derivatives under Glass-Steagall. So if all you did was reimpose Glass-Steagall, then derivative transactions outside a bank wouldn't be regulated. Another thing Glass-Steagall wouldn't do - a big part of this problem was the subprime loans. Glass-Steagall didn't do anything about subprime loans. A bank could make them, and even worse, they didn't do anything about securitization - you make a bunch of loans, then package them up and sell them. Glass-Steagall is 80 years old - it didn't know from these."
Except it would have prevented all of these from falling under government bailout protection, and Barney knows it.
Barney's pathetic attack on Glass-Steagall may be part of a larger freakout by Geithner and Obama. Sources close to the Administration have reported that the White House is already panicked over the momentum for Glass-Steagall that took off after the JPMorgan Chase revalations, and they are weighing if and when they are going to have to publicly intervene in some way. The problem is that some of the Congressional Dems whom the Obama campaign is counting on to back Obama's reelection are strong Glass-Steagall supporters, the source noted.