Glass-Steagall prevents American financial intermediaries (1); traditional financial intermediaries (1).
naked capitalism Thu 2010-07-22 16:19 EDT
NY Fed: We document that the shadow banking system became severely strained during the financial crisis because, like traditional banks, shadow banks conduct credit, maturity, and liquidity transformation, but unlike traditional financial intermediaries, they lack access to public sources of liquidity, such as the Federal Reserve's discount window, or public sources of insurance, such as federal deposit insurance.
Jesse's Café Américain Tue 2009-11-03 20:06 EST
...The notion that Glass-Steagall prevents American financial intermediaries from fulfilling their utmost potential in a global marketplace reflects inadequate understanding of the events that precipitated the act and the similarities between today's financial marketplace and the market nearly a century ago...The unbridled activities of those gifted financiers crumbled under the dynamic forces of the capital marketplace. If you take away the checks, the market forces will eventually knock the system off balance. Mark D. Samber (1995)
Brilliant Warning; circa 1995; Deregulate Banks; Jesse's Café Américain; Robert Rubin's Proposal.
