Glass Steagall

Former Fed Chair Paul Volcker Is Right About Bank Reform

We missed this BusinessWeek interview with Paul Volcker over the holidays but after reading it, we’re in his corner on bank reform and said something very similar earlier in December when McCain proposed reinstating Glass Steagall. It’s just that Volcker is much more definitive about it. He clarified that he’s not advocating an outright return

John McCain: I Have An Economic Plan, It’s Good (part 10)

Yesterday Senators John McCain (R-Arizona) and Maria Cantwell (D-Washington) proposed reinstating Glass Steagall, the Depression-era body of financial regulations that, among other things, kept traditional banking activities like deposits and lending separate from more sophisticated activities like securities trading and insurance. Glass Steagall was repealed by the Gramm Leach Bliley Act in 1999, which enabled

A Brief, Non-Technical Summary Of The Financial Crisis

The financial crisis that began in August 2007 and continues today (October 2009) has—at least for now—brought consumer banking back to “savings and loan” basics. Up to the 1980s, before loan securitization found its footing, consumer banking was community focused, bank reps knew their clients’ current and projected finances intimately, and funded home loans from

Does BofA CEO Ken Lewis Want To Break Up The Bank?

Is Ken Lewis suggesting a rebirth of Glass Steagall? If so, the Grave of Phil Gramm’s must be turning over. And also the special interests of Gramm’s decades-long crusade to deregulate banking must have gotten to him, as the story that started this rumor has been updated. Lewis said something of the sort after a

Robert Rubin’s Legacy After GS, Treasury, Citi

Years ago when I was working for UBS, I read this book on Goldman Sachs, because I wanted to see how their culture had evolved up to the IPO stage—the book came out the same year as their IPO. Our company had been a private partnership (Brinson Partners) that sold to UBS a few years

Did Phil Gramm Kill The Economy? Will He Be Treasury Secretary?

Back in June, released tournament brackets where users can vote on who killed the economy. Even though blame can’t rest with a single person or entity, this is a fun tool that’s still on their most-read list. Interestingly, former senator and current UBS investment banking executive Phil Gramm was not even on the list.