The Bankers Panic of 2008 - New Regulation

In late 1999, the bulwark bank regulation of 1933, the Glass-Steagall Act - the wall between investment banks and commercial banks - was torn down. This was a great victory for creative bankers, who had found the wall irksome and restrictive.

However, this teardown reduced the stability of the financial system and opened the way for the Bankers Panic of 2008. Senator Carter Glass, who led in the creation of the Federal Reserve System in 1913, saw how the deposits of correspondent banks flowed to New York City where the big banks were tempted to speculate with the funds. He was determined to keep the investment-banking foxes out of the commercial-banking chicken coop. A wall was created around the banking system to separate investment banks and their assets from commercial banks.

	Frank Calls for More Gov't Bank Powers	Associated Press	Thu Mar 20	1
	Partying Like It's 1929	The New York Times	Sat Mar 22	1
	At OpEdNews: Another Way Around the Credit Crisis: Minnesota Bill Would Authorize State Banks to	OpEdNews.Com Progressive	Mon Mar 24	0