half a century, the Depression-era law known as Glass-Steagall kept traditional
banks separate from the high-risk world of investment banks and hedge funds.
Uncle Sam agreed to insure our deposits. And the banks, in return, agreed not
to use those deposits to try to make money for themselves gambling in the Wall
changed with the industry-backed deregulation of the 1980s and ‘90s. Once
again, banks gained the ability to play risky games with government-backed
funds, setting the stage for the financial and economic meltdown of 2008.
Elizabeth Warren, John McCain, Maria Cantwell, and Angus King have introduced a
bill that would make the biggest banks simpler and smaller and once again end
the public subsidy to Wall Street speculation. By requiring banks to focus on
lending to the real economy, the 21st Century Glass-Steagall Act would point
the way toward a financial system that better serves consumers, small
businesses and the nation as a whole.