Thursday, June 02, 2011

Glass-Steagall, Again! Where's Sensenbrenner?

We noted yesterday that Jim Sensenbrenner had not co-sponsored the revival of Glass-Steagall.

Here's a factoid which should help convince the congressman that he OUGHT to sign up:

“In the run-up to the financial crisis, the giant national banks — which he viewed as a distinct species from the typical American bank — had done things that deserved condemnation. And, he added, “They are still doing things that I don’t think are very good.”Such as? “It has become a virtual casino,” he replied. “To me, banks exist for people to keep their liquid income, and also to finance trade and commerce.” Yet the six largest holding companies, which made a combined $75 billion last year, had $56 billion in trading revenues. “If you assume, as I do, that trading revenues go straight to the bottom line, that means that trading, not lending, is how they make most of their money,” he said. --J Nocera, quoted at Barry's Place

Casinos moved from Las Vegas.....

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