Remember Why Glass-Steagall Was Passed

A look at the history of the financial shenanigans of the 1920s offers a rationale for why a new Glass-Steagall deserves a serious look.

It seemed like a good idea at the time. After making loans to borrowers who were unable or unwilling to repay them, one of the nation's biggest banks came up with a solution: Take the loans, repackage them and sell them to customers and, in effect, bail out the bank from its money-losing positions. As for telling investors about the distressed state of the borrowers, well, why bother?

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