War Veteran’s Fund Losses Explain Glass-Steagall
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Dec. 7 (Bloomberg) -- One of the great debates to emergefrom the financial crisis is whether the U.S. Congress shouldresurrect some form of the Depression-era Glass-Steagall Act andbring back the separation of commercial and investment banking.It should, but not for the reasons usually cited.
Put aside the tired arguments about whether the law’srepeal in 1999 caused the crisis. It did help banks deemed toobig to fail get larger, but the crisis had no single proximatecause. We would have systemically dangerous financialinstitutions even if the law had stayed in place.