Well, not a glass steagall, more like a paper steagall. As a matter of fact no steagall at all. Oh-my-God! I just love it. I wish I were sorry to be thinking, “I told you so,” but I can’t help myself.
In case you don’t know about Glass Steagall let me remind you:
The Glass-Steagall Act is the Depression-era law that separated commercial and investment banking. It was functionally repealed in 1998, when Travelers (the parent company of Salomon Smith Barney) acquired Citicorp. And it was officially repealed in 1999. But recent events on Wall Street-the failure or sale of three of the five largest independent investment banks-have effectively turned back the clock to the 1920s, when investment banks and commercial banks cohabited under the same corporate umbrella.
--Daniel Gross, Newsweek
“Trust us,” said the members of he financial ruling class, “we’re too smart to get into trouble, too responsible to need regulation.” Yeah, sure. As always in a class war it’s the little guys who get screwed.
One bright note: It may cost us 85 billion, but at least we have a socialized insurance company to show for it. That’s a good first step.