Warren’s Mistake About Wall Street Risk-Taking
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July 22 (Bloomberg) -- When U.S. Senator Elizabeth Warren,the former law-school professor and self-appointed scourge ofWall Street, gets her history terribly wrong -- and proposes anew law based on that lack of understanding -- there must be areckoning.
On July 11, Warren introduced the “21st Century Glass-Steagall Act of 2013,” theoretically designed to “reduce risksto the financial system by limiting banks’ ability to engage incertain risky activities and limiting conflicts of interest.”Warren’s allusion to the original Glass-Steagall Act of 1933 --which gave Wall Street’s commercial banks and investment banksone year to choose to be one or the other -- was intentional, ofcourse.