Abigail Field | The Real Volcker Rule: No Gambling with the Public’s Money

The Real Volcker Rule: No Gambling with the Public’s Money

Pundits and Wall Street reforming politicians are crowing: Wowie! Jamie D has fought for weak regulations, especially a weak Volcker rule, but now Wall Street’s goose is cooked! We’re going to get a strong Volcker rule!

But that gleeful analysis amounts to: We lost the war but hey, we might still win a battle!

Former Fed Chair Paul Volcker fought incredibly hard for something much more powerful than even a strong version of the so-called Volcker rule. Volcker pushed for a return of Glass-Stegall, a law that until 1999 prevented the public financing of Wall Street gambling. Glass-Stegall/Volcker-for-real stands for the idea that when a company’s cash (deposits) is guaranteed by the government and the company has access to incredibly cheap government money, under no circumstances can the company be allowed to gamble with it.

Let’s be clear: Glass-Stegall wouldn’t prevent gambling addicts like Jamie Dimon from losing big bets. Crucially, however, Glass-Stegall would make the cost of placing those bets market rate, and make the gambler’s shareholders take the loss.

Rest here…

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Comments
One Response to “Abigail Field | The Real Volcker Rule: No Gambling with the Public’s Money”
  1. 1ofthemany says:

    PLEASE SIGN!!!!I I AM NOT A PROGRESSIVE I AM FOR WHAT IS RIGHT!!!
    Elizabeth Warren and Mr. Volcker’s are not dummies only the stupidly run banks are adn tehy continue to speak the normal rhetoric of psychobabble, time for them to pay up, shut up and do the right thing. long past time.
    PLEASE Sign the petition
    http://act.boldprogressives.org/cms/thanks/sign_glasssteagall?action_id=10853103&akid=7785.1197635.kD5wVn&form_name=act&rd=1&source=e1-wallstreet-fin-pagefollowup-sign_glasssteagall

    Tired of begin DIC(#)tated to ….we demand NO more control We are the free people and will continue to be, we will fight the good fight ALWAYS, time for them to GO

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