Comments on: What Is Glass-Steagall And Why Should I Care About It? http://weakonomics.com/2010/01/04/what-is-glass-steagall-and-why-should-i-care-about-it/ Everything That's Wrong With You And Your Money Wed, 23 May 2012 01:09:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Tyler http://weakonomics.com/2010/01/04/what-is-glass-steagall-and-why-should-i-care-about-it/comment-page-1/#comment-3442 Tyler Tue, 05 Jan 2010 03:21:17 +0000 http://weakonomics.com/?p=3639#comment-3442 Can you imagine how the banks will scream about this one? I can't see it happening but if it did I don't see how it could benefit the consumer and the American economy. It's not like there weren't financial crisis and bank runs between Glass-Seagall and 1999. Better regulation may help but part of it is the nature of the economic beast; boom and bust cycles have always been around and always will be. I wish they would expend the energy in measures to make America more competitive over the long haul instead of knee-jerk reacting. .-= Tyler´s last blog ..<a href="http://www.webbizfinance.com/2010/01/01/what-are-you-worth/" rel="nofollow">What are You Worth?</a> =-. Can you imagine how the banks will scream about this one? I can’t see it happening but if it did I don’t see how it could benefit the consumer and the American economy. It’s not like there weren’t financial crisis and bank runs between Glass-Seagall and 1999. Better regulation may help but part of it is the nature of the economic beast; boom and bust cycles have always been around and always will be. I wish they would expend the energy in measures to make America more competitive over the long haul instead of knee-jerk reacting.
.-= Tyler´s last blog ..What are You Worth? =-.

]]> By: Mrs. Money http://weakonomics.com/2010/01/04/what-is-glass-steagall-and-why-should-i-care-about-it/comment-page-1/#comment-3441 Mrs. Money Mon, 04 Jan 2010 23:36:38 +0000 http://weakonomics.com/?p=3639#comment-3441 WOW! I work in a bank and we do have someone licensed to sell investments. That would suck for them if that actually happened! I think it does make sense, though! .-= Mrs. Money´s last blog ..<a href="http://ultimatemoneyblog.com/i-bought-a-brand-new-ford-mustang-at-18" rel="nofollow">Regret a Car Purchase? I Bought a Brand New Ford Mustang at 18</a> =-. WOW! I work in a bank and we do have someone licensed to sell investments. That would suck for them if that actually happened! I think it does make sense, though!
.-= Mrs. Money´s last blog ..Regret a Car Purchase? I Bought a Brand New Ford Mustang at 18 =-.

]]> By: Susan Tiner http://weakonomics.com/2010/01/04/what-is-glass-steagall-and-why-should-i-care-about-it/comment-page-1/#comment-3440 Susan Tiner Mon, 04 Jan 2010 23:14:21 +0000 http://weakonomics.com/?p=3639#comment-3440 Frontline has a good summary of the history of Glass-Steagull at http://www.pbs.org/wgbh/pages/frontline/shows/wallstreet/weill/demise.html In particular it notes that the bill was originally created to "limit the conflicts of interest created when commercial banks are permitted to underwrite stocks or bonds." In today's Time interview at http://www.time.com/time/specials/packages/printout/0,29239,1946375_1948023_1947253,00.html Bernanke says he doesn't think Glass-Steagull would have prevented the current crisis. But you asked for an opinion. It makes sense to me to put regulations in place that minimize conflicts of interest. .-= Susan Tiner´s last blog ..<a href="http://www.financialorganizing.info/?p=1003" rel="nofollow">From Lady Gaga to Charles R. Kesler</a> =-. Frontline has a good summary of the history of Glass-Steagull at
http://www.pbs.org/wgbh/pages/frontline/shows/wallstreet/weill/demise.html
In particular it notes that the bill was originally created to “limit the conflicts of interest created when commercial banks are permitted to underwrite stocks or bonds.” In today’s Time interview at
http://www.time.com/time/specials/packages/printout/0,29239,1946375_1948023_1947253,00.html
Bernanke says he doesn’t think Glass-Steagull would have prevented the current crisis.

But you asked for an opinion. It makes sense to me to put regulations in place that minimize conflicts of interest.
.-= Susan Tiner´s last blog ..From Lady Gaga to Charles R. Kesler =-.

]]> By: Aaron @ Clarifinancial http://weakonomics.com/2010/01/04/what-is-glass-steagall-and-why-should-i-care-about-it/comment-page-1/#comment-3439 Aaron @ Clarifinancial Mon, 04 Jan 2010 17:11:33 +0000 http://weakonomics.com/?p=3639#comment-3439 I think the resurrection of Glass-Steagall would have an adverse effect on the financial sector over a three to five year period of time. Then things would level out. Things did get crazy when financial institutions would make loans against investments to individuals to buy life insurance inside a trust and they were the trustee. A Glass-Steagall-type-thing would reduce this type of monkey business, but it would also increase fighting between industries as they all fight for their own self-interests. Maybe now that fee-only advisors are more established, their fiduciary role would fit better in a segregated financial industry. I think the resurrection of Glass-Steagall would have an adverse effect on the financial sector over a three to five year period of time. Then things would level out.

Things did get crazy when financial institutions would make loans against investments to individuals to buy life insurance inside a trust and they were the trustee. A Glass-Steagall-type-thing would reduce this type of monkey business, but it would also increase fighting between industries as they all fight for their own self-interests. Maybe now that fee-only advisors are more established, their fiduciary role would fit better in a segregated financial industry.

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