GlassSteagallfan
1st October 2013, 23:22
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October 1, 2013 • 9:25AM
In a letter to his U.S. colleagues, Bruno Tobback called the members of the US Congress to reinstate Glass-Steagall banking separation “as soon as possible”.
Bruno Tobback is the President of the Socialist Party of the Flanders (the Dutch speaking northern part of Belgium). Today he is a Member of the Belgian Federal Parliament. Between 2004 and 2007 he served as Minister for Environment and Pensions for the Belgian government.
“Dear members of the United States Senate and House of Representatives,
In July 2013 Senators Ms. Warren, Mr. McCain, Ms. Cantwell and Mr. King introduced a bill 'The 21st Century Glass-Steagall Act of 2013'. Our party is very pleased to hear that the United States considers reinstating the separation of commercial and investment banking.
Five years ago Lehman Brothers collapsed. Since then, nothing has fundamentally changed in the banking system. This is evident from the fact that many banks are still gambling with our savings and their casinos have far from closed. This has to stop.
The financial crisis has cost the European Union 1.6 trillion (13% EU GDP). EUR 1 080 billion of which went on guarantees, EUR 320 billion on recapitalization measures, EUR 120 billion on impaired assets and EUR 90 billion on liquidity measures. The European Commission required substantial restructuring of banks receiving aid, including cutting of certain activities, to ensure their future viability without further public support and to offset distortions of competition caused by the subsidies received. Still, the system remains a threat to society and people's savings.
The objective of all banking structure reform must be to deliver a safe, stable and efficient banking system that operates in a competitive market economy and serves the needs of the real economy and consumers. Banks need to stimulate economic growth by supporting the provision of credit to the economy, in particular to SMEs and start-ups, provide greater resilience against potential financial crises, restore trust in banks and change the banking culture. The separation of banks is the most effective way to make this happen.
Banking structures needs to be simpler and more transparent. Investment banks should no longer work with savings. Commercial banks, on the other hand, should focus on providing basic banking services. Hence, those banks will be smaller and less expensive to save. Moreover, going back to the core business will improve the quality of basic banking services. Finally, splitting banks means fair competition and more breathing room for smaller commercial banks. What are politicians waiting for?
It is clear that in the coming years an efficient regulation of the financial sector should finally be on the political agenda, including the European elections in 2014. We therefore ask you to reinstate the separation of commercial and investment banks as soon as possible, giving the European Union the courage to do the same.
Sincerely,
Bruno Tobback President of the Flemish Socialist Party”
Source (http://larouchepac.com/node/28360)
October 1, 2013 • 9:25AM
In a letter to his U.S. colleagues, Bruno Tobback called the members of the US Congress to reinstate Glass-Steagall banking separation “as soon as possible”.
Bruno Tobback is the President of the Socialist Party of the Flanders (the Dutch speaking northern part of Belgium). Today he is a Member of the Belgian Federal Parliament. Between 2004 and 2007 he served as Minister for Environment and Pensions for the Belgian government.
“Dear members of the United States Senate and House of Representatives,
In July 2013 Senators Ms. Warren, Mr. McCain, Ms. Cantwell and Mr. King introduced a bill 'The 21st Century Glass-Steagall Act of 2013'. Our party is very pleased to hear that the United States considers reinstating the separation of commercial and investment banking.
Five years ago Lehman Brothers collapsed. Since then, nothing has fundamentally changed in the banking system. This is evident from the fact that many banks are still gambling with our savings and their casinos have far from closed. This has to stop.
The financial crisis has cost the European Union 1.6 trillion (13% EU GDP). EUR 1 080 billion of which went on guarantees, EUR 320 billion on recapitalization measures, EUR 120 billion on impaired assets and EUR 90 billion on liquidity measures. The European Commission required substantial restructuring of banks receiving aid, including cutting of certain activities, to ensure their future viability without further public support and to offset distortions of competition caused by the subsidies received. Still, the system remains a threat to society and people's savings.
The objective of all banking structure reform must be to deliver a safe, stable and efficient banking system that operates in a competitive market economy and serves the needs of the real economy and consumers. Banks need to stimulate economic growth by supporting the provision of credit to the economy, in particular to SMEs and start-ups, provide greater resilience against potential financial crises, restore trust in banks and change the banking culture. The separation of banks is the most effective way to make this happen.
Banking structures needs to be simpler and more transparent. Investment banks should no longer work with savings. Commercial banks, on the other hand, should focus on providing basic banking services. Hence, those banks will be smaller and less expensive to save. Moreover, going back to the core business will improve the quality of basic banking services. Finally, splitting banks means fair competition and more breathing room for smaller commercial banks. What are politicians waiting for?
It is clear that in the coming years an efficient regulation of the financial sector should finally be on the political agenda, including the European elections in 2014. We therefore ask you to reinstate the separation of commercial and investment banks as soon as possible, giving the European Union the courage to do the same.
Sincerely,
Bruno Tobback President of the Flemish Socialist Party”
Source (http://larouchepac.com/node/28360)