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Bushcrafter
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Discussion Starter · #1 ·
Seeing some reports that the UK gov is preparing to return the banks to conform to the Glass-Steagall type laws they put in place after great depression 1.0. Either the penny has finally dropped that they can't use taxpayers to bail the TBTFs out as it kills the economy stone dead or somebody is applying leverage on them (maybe the same people who got Straus Khan removed) .


In a very surprising move, the AP reports that the UK finance minister George Osborne has announced a major overhaul of British banks, the key provision of which will be the separation of bank retail and investment business "in order to help avoid another financial crisis" - an act which is in essence a reintroduction of Glass-Steagall. What is stunning about this development is that the banking cartel has allowed the UK to get so far as to effectively repeal Gramm-Leach-Bliley, the act that ended Glass Steagall and allowed unprecedented deregulation to convert formerly safe banks into the mastodon, 50x levered, TBTF hedge funds they are now.

http://www.zerohedge.com/article/uk-preparing-return-glass-steagall

From reading this report though, it looks like they still have a ways to go before the TBTF banks are brought back under some kind of control.

http://www.heraldscotland.com/mobil...es-to-split-banks-in-giant-shake-up-1.1106849



There is a bill in the US to reinstate it also - HR1489
 

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Bushcrafter
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Discussion Starter · #5 ·
Leper Thanks, but its an American bill not British so whats it got to do with us Hanf old chap ?
They had the same kind of rules here after great depression 1.0, a lot of countries did, as they all got burned by out of control banks, used to be very difficult to get a bank loan, mortage or any kind of credit until Mrs Thatch got rid of the rules here (back in the eighties I think) and things went all to hell shortly after. They're not doing anything new, just putting back some of the sensible regulations they had before. IIRC I think they called this removal of the rules 'The Big Bang' .........

Reinstating Glass-Steagall on a global basis will upset the banksters a tad, all that dodgy paper they're holding will be written off but even after FDR and others put the rules in place, the economy did not recover for many years.....
 
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