OMAHA, NE – Senator Elizabeth Warren seeks to reinstate Glass-Steagall which would prevent banks that make risky investments from taking deposits insured by FDIC. Glass-Steagall is a depression era law which separated checking and savings accounts from risky investment banking. Warren agreed that the bill would not have prevented the Great Recession, but it would still require banks to downsize, thus reducing the risk of future bailouts. Here are Five Facts about the new Glass-Steagall.
Elizabeth Warren appeared (below) on the Squawk Box on CNBC and reminded the skeptic hosts that she was able to get the Consumer Financial Protection Bureau in place despite all the opposition. She believes that at least by trying, at least this new bill will have more of a chance than if we did nothing at all.
Elizabeth Warren on FOX News, where she remarks, among other things, that Glass-Steagall was only a shadow of its former self by the time President Bill Clinton repealed it. The Law was important because it prevented the investing risk takers from using the regular persons money for their risky endeavors. She stresses that her bill doesn’t stop investors from going through with their risky investments, it just keeps them from using FDIC backed taxpayer dollars. Senator Warren also expresses excitement about getting bipartisan interest in the bill.