Pam Martens Pushes Glass-Steagall, Warns the Major Banks Are On a Secret Binge of Trading Their Own Stocks
July 8, 2014 • 4:44PM

Pam Martens, writing in yesterday's edition of her widely-read blog "Wall Street on Parade: the citizen's guide to Wall Street", warns that a new binge of "dark pool" stock trading by the major Wall Street banks is underway. She says Wall Street's so-called "self-regulator," FINRA (Financial Industry Regulatory Authority) on June 2 "dropped a bombshell," reporting "trading data for Wall Street's dark pools — unregistered stock exchanges that the SEC recklessly allows to trade stocks without making the bids and offers public." She says this is a bombshell because these banks, including JPMorgan Chase, Bank of America, and Citigroup, are also "trading the stock of their own corporate parents," which is exactly the practice that blew up Wall Street in the 1930s, and led to the passage of Glass-Steagall. "It was a clear-cut recipe for disaster that no regulator took action to preempt until, at the height of an economic collapse, Congress passed the Glass-Steagall Acton June 16, 1933... That legislation protected a nation from the insatiable greed of stock speculators for almost 70 years."

Martens also takes delight in reporting on the NY Times's about-face on Glass-Steagall, where they admitted they were wrong to have supported its repeal: "Having seen the results of this sweeping deregulation, we now think we were wrong to have supported it," the Times wrote on June 27, 2012. Although Martens doesn't mention it, it would appropriate for the Times to likewise retract their 1930s editorial endorsement of Adolph Hitler, but that seems unlikely.