Repeal the Repeal !
Was anyone watching in 1999 when Glass-Steagall was repealed? This law was passed during the Great Depression because bankers were giving companies easy credit to do dumb things in order for their investment bankers to get deals with big fees.
The monster financial services company, Citi, demonstrated Wall Street’s lobby power when it was put together in anticipation of the repeal and with other big banks immediately gave Enron easy credit to do dumb things in order for their investment bankers to get deals with big fees.
Enron, the hedge fund on top of a gas line, was free to quadruple debt in five years to $13.6 billion. Alan Greenspan, head of the Fed, told Congress meanwhile that hedge funds do not need regulation because they get money from regulated banks (and he wasn’t even kidding).
After Glass-Steagall was repealed, thousands of Enron’s employees lost their jobs and pensions, and many others lost pension savings. Where is the democratic demand to repeal the repeal? Citizens should, at least, demand that their government regulate hedge funds before more jobs and pensions are destroyed.