Former Chairman of Citigroup: Restore Glass-Steagall
from Washington's Blog by George Washington
The former chairman of Citigroup, John S. Reed, wrote a letter to the editor of the New York Times calling for a reinstatement of Glass-Steagall:
As another older banker and one who has experienced both the pre- and post-Glass-Steagall world, I would agree with Paul A. Volcker (and also Mervyn King, governor of the Bank of England) that some kind of separation between institutions that deal primarily in the capital markets and those involved in more traditional deposit-taking and working-capital finance makes sense.
But for Barney Frank, Tim Geithner and the rest of the boys, it is business as usual.
http://georgewashington2.blogspot.com/2009...up-restore.html
Full Version: Former Chairman of Citigroup: Restore Glass-Steaga
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Restoring Glass-Steagall
Restoring Glass-Steagall is such an obvious move that one has to wonder why it is not being seriously considered.
Granted, it took a multi-year lobbying effort and the expenditure of many millions of dollar to subvert a national regulatory and political process to overturn it, largely led by Sandy Weill of Citigroup. Frontline: The Long Demise of Glass-Steagall.
And with the return of the Clinton crowd as Obama's key financial advisers, led by Larry Summers and young Tim, supplemented by more mercenaries from the-investment-bank-that-must-not-be-named, perhaps it is unreasonable to expect the Reformer to enact such a simple, time-tested reform.
Perhaps Barney and Chris Dodd can bring the Princes of Wall Street down to Washington again, profusely thank them for taking time from their busy day to speak to the people's representatives, privately thank them for their generous campaign contributions, and simply ask them what they will accept as regulation again.
Until the banks are restrained, and the financial system reform, and balance restored to the economy, there will be no sustained recovery.
And there can be no better start than to stop the gambling with the public money that is the existing US banking system.
How bad does it have to get in the US before the people finally speak out? Wait and see, because it will be getting worse, a lot worse than you might imagine. And each day of delay adds a pound of misery for your grandchildren to carry.
Volcker’s Advice
NY Times
October 22, 2009
To the Editor:
Re “Volcker’s Voice, Often Heeded, Fails to Sell a Bank Strategy” (front page, Oct. 21): http://www.nytimes.com/2009/10/21/business...cker&st=cse
As another older banker and one who has experienced both the pre- and post-Glass-Steagall world, I would agree with Paul A. Volcker (and also Mervyn King, governor of the Bank of England) that some kind of separation between institutions that deal primarily in the capital markets and those involved in more traditional deposit-taking and working-capital finance makes sense.
This, in conjunction with more demanding capital requirements, would go a long way toward building a more robust financial sector.
John S. Reed
New York, Oct. 21, 2009
The writer is retired chairman of Citigroup.
Restoring Glass-Steagall is such an obvious move that one has to wonder why it is not being seriously considered.
Granted, it took a multi-year lobbying effort and the expenditure of many millions of dollar to subvert a national regulatory and political process to overturn it, largely led by Sandy Weill of Citigroup. Frontline: The Long Demise of Glass-Steagall.
And with the return of the Clinton crowd as Obama's key financial advisers, led by Larry Summers and young Tim, supplemented by more mercenaries from the-investment-bank-that-must-not-be-named, perhaps it is unreasonable to expect the Reformer to enact such a simple, time-tested reform.
Perhaps Barney and Chris Dodd can bring the Princes of Wall Street down to Washington again, profusely thank them for taking time from their busy day to speak to the people's representatives, privately thank them for their generous campaign contributions, and simply ask them what they will accept as regulation again.
Until the banks are restrained, and the financial system reform, and balance restored to the economy, there will be no sustained recovery.
And there can be no better start than to stop the gambling with the public money that is the existing US banking system.
How bad does it have to get in the US before the people finally speak out? Wait and see, because it will be getting worse, a lot worse than you might imagine. And each day of delay adds a pound of misery for your grandchildren to carry.
Volcker’s Advice
NY Times
October 22, 2009
To the Editor:
Re “Volcker’s Voice, Often Heeded, Fails to Sell a Bank Strategy” (front page, Oct. 21): http://www.nytimes.com/2009/10/21/business...cker&st=cse
As another older banker and one who has experienced both the pre- and post-Glass-Steagall world, I would agree with Paul A. Volcker (and also Mervyn King, governor of the Bank of England) that some kind of separation between institutions that deal primarily in the capital markets and those involved in more traditional deposit-taking and working-capital finance makes sense.
This, in conjunction with more demanding capital requirements, would go a long way toward building a more robust financial sector.
John S. Reed
New York, Oct. 21, 2009
The writer is retired chairman of Citigroup.
QUOTE(Snuffysmith @ Oct 28 2009, 09:48 AM) 
Restoring Glass-Steagall
Restoring Glass-Steagall is such an obvious move that one has to wonder why it is not being seriously considered.
Granted, it took a multi-year lobbying effort and the expenditure of many millions of dollar to subvert a national regulatory and political process to overturn it, largely led by Sandy Weill of Citigroup. Frontline: The Long Demise of Glass-Steagall.
And with the return of the Clinton crowd as Obama's key financial advisers, led by Larry Summers and young Tim, supplemented by more mercenaries from the-investment-bank-that-must-not-be-named, perhaps it is unreasonable to expect the Reformer to enact such a simple, time-tested reform.
Perhaps Barney and Chris Dodd can bring the Princes of Wall Street down to Washington again, profusely thank them for taking time from their busy day to speak to the people's representatives, privately thank them for their generous campaign contributions, and simply ask them what they will accept as regulation again.
Until the banks are restrained, and the financial system reform, and balance restored to the economy, there will be no sustained recovery.
And there can be no better start than to stop the gambling with the public money that is the existing US banking system.
How bad does it have to get in the US before the people finally speak out? Wait and see, because it will be getting worse, a lot worse than you might imagine. And each day of delay adds a pound of misery for your grandchildren to carry.
Volcker’s Advice
NY Times
October 22, 2009
To the Editor:
Re “Volcker’s Voice, Often Heeded, Fails to Sell a Bank Strategy” (front page, Oct. 21): http://www.nytimes.com/2009/10/21/business...cker&st=cse
As another older banker and one who has experienced both the pre- and post-Glass-Steagall world, I would agree with Paul A. Volcker (and also Mervyn King, governor of the Bank of England) that some kind of separation between institutions that deal primarily in the capital markets and those involved in more traditional deposit-taking and working-capital finance makes sense.
This, in conjunction with more demanding capital requirements, would go a long way toward building a more robust financial sector.
John S. Reed
New York, Oct. 21, 2009
The writer is retired chairman of Citigroup.
Restoring Glass-Steagall is such an obvious move that one has to wonder why it is not being seriously considered.
Granted, it took a multi-year lobbying effort and the expenditure of many millions of dollar to subvert a national regulatory and political process to overturn it, largely led by Sandy Weill of Citigroup. Frontline: The Long Demise of Glass-Steagall.
And with the return of the Clinton crowd as Obama's key financial advisers, led by Larry Summers and young Tim, supplemented by more mercenaries from the-investment-bank-that-must-not-be-named, perhaps it is unreasonable to expect the Reformer to enact such a simple, time-tested reform.
Perhaps Barney and Chris Dodd can bring the Princes of Wall Street down to Washington again, profusely thank them for taking time from their busy day to speak to the people's representatives, privately thank them for their generous campaign contributions, and simply ask them what they will accept as regulation again.
Until the banks are restrained, and the financial system reform, and balance restored to the economy, there will be no sustained recovery.
And there can be no better start than to stop the gambling with the public money that is the existing US banking system.
How bad does it have to get in the US before the people finally speak out? Wait and see, because it will be getting worse, a lot worse than you might imagine. And each day of delay adds a pound of misery for your grandchildren to carry.
Volcker’s Advice
NY Times
October 22, 2009
To the Editor:
Re “Volcker’s Voice, Often Heeded, Fails to Sell a Bank Strategy” (front page, Oct. 21): http://www.nytimes.com/2009/10/21/business...cker&st=cse
As another older banker and one who has experienced both the pre- and post-Glass-Steagall world, I would agree with Paul A. Volcker (and also Mervyn King, governor of the Bank of England) that some kind of separation between institutions that deal primarily in the capital markets and those involved in more traditional deposit-taking and working-capital finance makes sense.
This, in conjunction with more demanding capital requirements, would go a long way toward building a more robust financial sector.
John S. Reed
New York, Oct. 21, 2009
The writer is retired chairman of Citigroup.
Who in the world today could pull Obama's chain sufficiently to get him to pay attention to this matter?
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