Glass-Steagall Act Would Be Revived In New Bill From Elizabeth Warren, Bipartisan Coalition

http://www.huffingtonpost.com/2013/07/11/glass-steagall-act-elizabeth-warren_n_3580967.html

WASHINGTON -- A bipartisan group of four senators that includes Elizabeth Warren (D-Mass.) and John McCain (R-Ariz.) introduced an updated version of the landmark Glass-Steagall Act on Thursday, aimed at reining in risk at America's largest Wall Street banks.

The legislation is unlikely to be signed into law, but underscores a deepening rift between the House and Senate over financial accountability. While bipartisan coalitions in the House have been moving legislation to deregulate swaps -- the complex financial products at the heart of the 2008 banking collapse -- a host of Senate bills cracking down on Wall Street risk have garnered Democratic and GOP support.

The new bill, which is also cosponsored by Sens. Maria Cantwell (D-Wash.) and Angus King (I-Maine), would require banks that accept federally insured deposits to focus on traditional lending and would bar them from engaging in risky securities trading. The separation between lending and trading was originally imposed in 1933 by the Glass-Steagall Act. Cantwell and McCain previously introduced the plan as an amendment to the 2010 Dodd-Frank financial reform bill, but the largely symbolic bill was never approved. The legislation introduced today would also bar banks that accept insured deposits from dealing swaps or operating hedge funds and private equity enterprises.

"Since core provisions of the Glass-Steagall Act were repealed in 1999, shattering the wall dividing commercial banks and investment banks, a culture of dangerous greed and excessive risk-taking has taken root in the banking world," McCain said in a written statement. "Big Wall Street institutions should be free to engage in transactions with significant risk, but not with federally insured deposits."

McCain voted for the 1999 Gramm-Leach-Bliley Act, which repealed Glass-Steagall. He also named one of that bill's authors, former Sen. Phil Gramm (R-Texas), an economic adviser to his 2008 presidential campaign.

Dodd-Frank attempted to rein in taxpayer-backed Wall Street speculation with the Volcker Rule, which barred banks that accept deposit insurance from placing securities and derivatives bets for their own accounts. But the Volcker Rule has not been finalized by regulators after nearly three years, and regulatory agencies have proposed a rule hundreds of pages long with a lengthy series of loopholes and exemptions. Forcing banks out of the securities business altogether would eliminate the regulatory wrangling over what types of trades violate the Volcker Rule.

Most federal regulators are opposed to reinstating Glass-Steagall, which would force big banks to spin off hundreds of billions of dollars worth of business into independent firms.

"Despite the progress we've made since 2008, the biggest banks continue to threaten the economy," Warren said in a written statement. "The four biggest banks are now 30 percent larger than they were just five years ago, and they have continued to engage in dangerous, high-risk practices that could once again put our economy at risk."

The legislation follows legislation from Sens. Sherrod Brown (D-Ohio) and David Vitter (R-La.) that would require big banks to hold significantly more capital as a cushion against losses, limiting the amount of debt-financed activity that banks could engage in. The bill would strongly encourage five of the six largest U.S. banks to break up into two or three smaller entities to avoid the strict new rules.

My Comment: Below is an CNBC interview where Elizabeth Warren presents the Glass-Seagall Act and is challenged by Jim Cramer CNBC Anchor. Elizabeth with historical facts disproved Jim argument that this act is not going to stop Bank crashing as it has been since 1980. That was a very poor argument for the banks started to crash AFTER the glass-steagall act suppressed and finally was repealed in 1999. When the act was in place, it kept banks from crashing for 50 years from 1933 to the early 1980s.

This CNBC you-tube interview went viral on the net. Since youtube is allied with Mystery Babylon and this didn't serve their mistress well, they removed the interview from youtube.

The whole inteview can be watch at the newslink below or only the segment of the anchor man below :



Elizabeth Warren Schools CNBC Anchors On The History Of Financial Regulation (VIDEO)

http://www.huffingtonpost.com/2013/07/17/elizabeth-warren-cnbc-anchors_n_3610893.html

"Elizabeth Warren has a message for any television personalities questioning the merits of increased financial regulation: You’re wrong.

During a media tour last week to bring attention to a bill the Senator proposed with Sen. John McCain (R-Ariz.) and others aimed at preventing banks from making risky bets with Americans’ savings, CNBC personality Brian Sullivan asked her to back his assertion that no law can prevent major bank busts.

“No that is just wrong,” Warren said in response.

Warren went on to prove her point by giving the CNBC anchors a quick lesson in history of financial regulation, noting that in the 50 years after the passage of Glass-Steagall, the bill which Warren’s proposal is modeled after, none of the big banks failed.

“We kept the system steady and secure and it was only as we started deregulating,” that bank failure become a real risk, Warren said. “You are not going to defend the proposition that regulation can never work, it did work.”

Elizabeth Warren’s Takedown Of CNBC Removed From YouTube
http://www.huffingtonpost.com/2013/07/18/elizabeth-warren-cnbc-youtube_n_3619939.html

"A viral clip of Sen. Elizabeth Warren (D-Mass.) ripping into the hosts of CNBC's "Squawk Box" has been removed from the senator's YouTube channel.

According to a message on YouTube, NBC Universal requested that the video be taken down on copyright grounds.

A CNBC spokesperson did not immediately return a request for comment.

Warren appeared on "Squawk Box" last Friday to tout her proposed update of the Glass-Steagall Act. The bill, introduced by Warren and Sens. John McCain (R-Ariz.), Maria Cantwell (D-Wash.) and Angus King (I-Maine) is aimed at reining in risk at the nation's biggest banks. During the interview, Warren countered CNBC's Brian Sullivan on the assertion that financial regulation can't prevent banks' risky bets.

"That is just wrong," Warren said. "We kept the system steady and secure and it was only as we started deregulating that bank failure become a real risk... You are not going to defend the proposition that regulation can never work, it did work."

Thanks in part to a post on Upworthy, the clip went viral. According to Upworthy's Adam Mordecai, the post on Warren's remarks amassed over 700,000 page views as of Wednesday.

"It's weird that they would try to shut down a sitting senator's comments," Mordecai said. "[The YouTube clip] is unedited, it's stuff they had on their network."

My Comments: Here's an 4 year old news link about the glass-steagall act repeal being responsible for the Financial Crisis. This is taken from Stephen's post 4 years ago.

The Financial Crisis began ten years ago today
Nov 12, 2009
http://www.dailyfinance.com/2009/11/12/a...to-reverse-san/

"Ten years ago today, Nov. 12, 1999, the Glass-Steagall Act from 1933 was repealed in order to allow Citicorp and Travelers to merge, creating Citigroup, a bank that was "too big to fail."

This was done with the support of Robert Rubin and Larry Summers, as the article above shows.


The incest going on between government and big business is a recipe for something called Fascism. Most people do not know what Fascism is, other than to associate it with Italy's Mussolini during World War II. But it is the takeover of government by big corporations, so that the government, in essence, becomes the servant of the corporations--the banks in particular.

According to the Wikipedia, Robert Rubin, who supported the repeal of Glass-Steagall, went on to become a bigwig in Citigroup, the company that had benefited from his political clout. In those eight years, "he received more than $126 million in cash and stock."


Larry Summers, too, pushed the same disastrous bill. Now he has been rewarded with a big-salary job in the Obama administration as Director of the National Economic Council. Do we really need him at the helm of our economic system?

On Oct. 14, 2009, Peter Cohan wrote an article, How Wall Street Bought Tim Geitner. Geitner is the current Treasury Secretary. Many of his aides receive big money from Wall Street and will certainly go back to their cushy jobs in the banks after they have worked so faithfully for them while employed by taxpayers.

http://www.dailyfinance.com/2009/10/14/how-wall-street-bought-tim-geithner/


These are the people who caused the problem in the first place. They have conflicts of interest while they are employed in government. They all know that their government jobs are temporary, and that their more long-lasting careers lay in the banks that employed them in the past and will take them back in the future. So the government makes policies that help the big corporations at the expense of America--the people and the government itself.

More Resignations due to Pope Francis Apostolic letter removing immunity

Interesting announcement :
One of the Federal Reserve Governors, Elizabeth Duke has resigned effective September 1, 2013.

Janet Napolitano [Homeland Security] has resigned effective September 1, 2013.

Ben Bernanke has already announced last year he wanted to resign and apparently he said that he will step out before Sept 1.

All these and maybe more resignation could surface from day to day in the news because Pope Francis issued an Apostolic Letter on July 11 that will be effective September 1, 2013 that will "effectively stripped away the immunity of all judges, attorneys, government officials and all entities established under the Roman Curia [hint: All corporations are established under the Roman Curia]. All of these "persons" can now to be held accountable for war crimes, crimes against humanity, [hint: Divine Spirit is humanity], for the unlawful restrictions of the liberties of the divine spirit incarnate; for failure to settle the accounts; for continued prosecution of claims already settled, etc."

http://www.vatican.va/holy_father/france...diziari_en.html

My Comments : Below is a good sound interview with Bix Weir about the manipulation of the market since the computers and the coming crash. Mystery Babylon had planned this crash for their own purpose of controlling the world. But we all know that the Lord will bring them down and that's what we have been witnessing.

In the interview below, Bix stress that since the economic crash was known, Greenback was hired to put up a plan how to redistribute the new currencies back to the public as fast as possible to reduce public unrest. Bix estimate that there will be a hard transition time (the collapse of the fiat money system unto the gold backed new system) for 4 to 6 months and gives his opinion how to best prepare ourself here .

Interview: Bix Weir on Gold Manipulation and the Coming Crash

Here's another view coming from an ex-financial Christian man named Bob who wrote this in his blog recently :

Manipulation further exposed

http://www.servias.org/?p=2047

This week JP Morgan announced it is exiting the physical commodity trade business amid scrutiny. See: http://finance.yahoo.com/news/jpmorgan-exit-physical-commodities-business-195443069.html

Let’s review the scandals:

1. Banks manipulated Mortgage-backed Securities which led to the 2008 meltdown

2. Banks manipulated the LIBOR rate which sets interest rates worldwide on trillions of dollars of investments

3. Banks manipulate the gold and silver commodities

4. Banks manipulate the aluminum market

We must conclude that banks virtually manipulate the entire “current” financial markets in one form or another. They have done this for years with impunity. When they got into trouble, governments bailed them out with taxpayer funds or newly created money, a future liability to taxpayers. This fraudulent behavior is worldwide. The deception is so widespread that it would be hard to find a jurisdiction that was not affected. What about your local bank? Unfortunately its interconnectedness to the larger banks put it at risk as well. Let me explain.

On a daily basis, the local bank sells its excess funds to a larger “correspondent” bank who has an ongoing relationship with it. These funds are called “Fed Funds”. A smaller bank might sell $10 million to the larger bank overnight. The next morning the smaller bank receives the $10 million plus one day of interest income. The larger bank will accumulate funds from many of its correspondent banks and sell to a money center bank such as Citibank, JP Morgan, etc. Typically it will make a small margin buying and selling. I worked the cash desk at the largest bank in Oklahoma in the 1970’s where I bought and sold around $100 million in Fed Funds. Our overall deposits were about $650 million. Our capital structure was under $100 million. Effectively I sold more cash than our capital structure or stockholder equity. This happened every day of the year. What would happen if the New York bank failed to deliver back our money? We would immediately become insolvent. What would happen if we failed to deliver our smaller correspondent banks’ money? They would also be insolvent. These funds are sent through the Federal Reserve wire system. The Fed has full knowledge of everyone’s accounts but it is all electronic money. Currency never moves between banks in this market.

As you can see the current system is so interwoven that if one of the money center banks went insolvent, it could take down the entire system. This current system is built on trust since there is no gold backing any of the money being traded. The same is true for your bank deposits, your pension balance, your social security, and your stock brokerage account.

I am not excited about being the purveyor of bad news. I relay this information so that you can make adjustments to your financial state. Be cautious going forward. Simplify, get rid of “stuff”. Get out of debt. Buy a little silver each month. Keep the cupboard full of non-perishable food and rotate it to keep the food fresh. Keep your vehicle serviced. Try to lower your ongoing monthly bills if possible. Pain is sure to come to the masses. I cannot tell you when for Our Heavenly Father has not told me. However, as you focus on hearing HIS Voice, HE will guide your steps in the turbulent times ahead. I am convinced that Love will see us all through the coming economic storm. HIS thoughts are above our thoughts, HIS ways are above our ways. HIS Love has all the answers needed to endure the trouble ahead. The Remnant will have taken on HIS Nature and will be plugged into the solution. The rest of the world will be looking to this Remnant to show them the Way. The illusions the populace were led to believe will be exposed and they will realize they have been blinded to the point of trusting a system built on smoke and mirrors. There will be much gnashing of teeth. If you have been forewarned about the coming challenges then you can deal with any fear that might try to grip your heart. There will be many with much fear and desperation. They will need to hear a calming voice. It will not be the end of the world, only the end of a failed system.

Checklist
Sunday, July 28th, 2013

If you believe that the current economic system of fiat currency is at risk of failure, then-

To minimize personal pain if and when the coming economic crisis arrives:

1. Your equities are held in certificate form.
2. You have no Federal retirement funds.
3. You have no CDs and investments in bonds.
4. You store your own precious metals.
5. You have no mortgage obligations.
6. You keep cash on hand for 6 months expenses.
7. You have no consumer debt at all.

If you believe that the current economic system is solid and will continue indefinitely, then-

1. Do nothing, all is safe and good.

Elle, regarding a post you made some time past. Do you at any time ever profit if anyone should buy gold or silver? Some of your sites listed do.

no

Jim Willie says, Three large banks near collapse

My comments : In the link below economist Jim Willie informs of the latest. The narration below is taken from an interview that Jim is part of. The full content of the interview is available at the link below. I only included some parts of it in this post.

In this interview there’s two main discussion :
1) What’s going on in the gold and silver markets by which is severely manipulated that is causing a massive shortage of metals.
2) That 3 major Banks are near collapse by which if any does collapse will bring down the rest. Just like the ex-finance Christian Bob was saying in post #154532 above.

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http://www.silverdoctors.com/jim-willie-everything-points-to-gold/

AUGUST 2, 2013 BY THE DOC

"Willie stated that the allocated gold account theft scandal will break soon, and could be the largest bank scandal in history.... the next Western bank to fail will trigger a massive contagion throughout the Western banking system, potentially bringing even Goldman Sachs and JP Morgan to their knees! ...

The most important point to start with regarding the gold market is that there’s no equilibrium regarding supply and demand. According to basic economics, what you should see is that demand clears supply and the supply satisfies the demand. We’re not seeing either! We’re seeing shortages and huge demand. Shortage in supply, and unspeakable demand across the whole world. We’re seeing pockets of shortages, pockets of different availability, different prices here and there, different premiums here and there- the whole market is disrupted!...

The dominant player in the COMEX gold inventory draw-downs you mentioned is JP Morgan. What’s even more telling of the criminality besides the empty vaults is the ravaging and the pillaging of the GLD holdings! They are going down massively with the plummeting JPM and COMEX inventories....

It’s so ugly that in the silver market, JPMorgan has not yet satisfied and delivered on the June silver futures contracts! It’s so ugly that using hidden entities that Andrew Maguire has detected in London, JPM is using hidden entities to hog 90% of the July silver deliveries! It appears that JPM doesn’t have the silver to meet June delivery, and is trying to replenish their own vaults by taking delivery in London, secretly, to replenish their inventory! Where are they getting it from? Maybe the SLV!

The JPM clients have removed between December and June- close to 40,000 kg of gold- thats 40 metric tons. While JPM’s house account has removed over 40 tons in the same period! What’s the lesson there? It appears JPM’s best friends and clients don’t trust them anymore!...

My best German source informs me that 3 major banks are in trouble, and these 3 banks are fighting every single night to fight off insolvency and failure. He says CitiGroup in New York, Barclays in London, and Deutsche Bank in Germany- every single night are in trouble.

The important thing to keep in mind about Deutsche Bank is that it won’t go down alone if it goes down at all. If it fails, it will take along with it 3,4,5,6 or 10, or 15 other banks! It will be 1 or 2 quickly, then a 3rd and 4th a few weeks later, another, then before you know it, all of Italy and their major banks would be kaput....

Don't bet your money that Deutsche Bank will go down, but if it does, the next day its going to be Citi, Barclays, HSBC, Morgan Stanley, Soc Gen, and big threats to JP Morgan and Goldman Sachs!

In conclusion, Deutsche Bank owns $25 trillion in OTC swaps with the Central banks and other major banks, so expect a daisy chain of derivative failures for the $1.6 quadrillion derivative market if it were to fail! Deutsche Bank cannot break down by itself. It would result in the complete breakdown of the European Monetary Union!...

A bank failure contagion, that’s whats going to push gold way over $2,000/oz again. Silver is going to be moving over $100 and gold is going over $5,000, I’m as certain of it as I am that the sun will rise in the east in the morning come January...."