Liam Halligan: Glass-Steagall 'Seems Quickly to be Building a Head of Steam'
January 14, 2013 • 11:21AM

Liam Halligan, chief economist of Prosperity Capital Management in London, has again taken to the pages of Britain's Daily Telegraph to demand Glass-Steagall. In his column entitled, "At Last, Question Time for the Money Printers," Halligan writes:

"....The trouble is that both QE [Quantitative Easing, the Fed's term for the endless bailout] and ring-fencing are a disaster waiting to happen.... Until the zombified mega-banks are put out of their misery, the UK will grow only at an extremely sluggish pace, if at all. And without a Glass-Steagall style separation of commercial and investment banking, we're doing nothing but lining ourselves up for another disastrous collapse.... Last week, a new bill was introduced in Congress to re-instate the Depression-era Glass-Steagall divide, jointly sponsored by a high-profile Democrat and Republican respectively. While a previous resolution expired during the last Congress, this one seems quickly to be building a head of steam.... Republicans on the House Financial Services Committee and Senate Banking Committee are also floating the view that a clean-break Glass-Steagall separation would be preferable to the regulatory over-kill represented by the Dodd-Frank law.... This Glass-Steagall battle isn't over yet, on either side of the Atlantic. Not by a long chalk. We can only hope it doesn't take another crash to force our governments to see sense...."