Statement in Support of Glass-Steagall from Veteran City of London Fund Adviser Stephen J. Lewis
May 10, 2013 • 9:54AM

We quote his statement:

"The reintroduction of bank regulation along the lines of the Glass-Steagall Act would materially strengthen the US financial system. It would ensure that the banks' essential function of providing credit to support productive activity was insulated from the risks that arise from speculative financial activities. For the moment, US banks may appear to be recovering from the 2007-09 crisis. But as long as banking and financial speculation remain bundled together, the threat of another, possibly even more damaging, crisis will persist.

"In Europe, there has been no semblance of recovery. Deepening economic distress across this continent increasingly imperils global growth and political stability. Bank reform is widely acknowledged to be necessary if Europe is ever to return to economic health. But Europe will not adopt the measures essential to set its banks on a firm basis until the US takes the lead. European policymakers do not want to be out of step with the USA on this. A US decision to separate essential banking functions from other financial activities would, therefore, not only be good for the USA, it would give a lead for which the rest of the world is crying out."

S.J. Lewis

May 9, 2013