As Obama Crumbles, More Voices Are Heard for Glass-Steagall

September 18, 2013 • 4:35PM

by Dennis Small

The political and psychological meltdown of President Barack Obama is proceeding with breathtaking speed, greatly strengthening the prospects for forcing through the adoption of Glass-Steagall in the short run. Reflective of the cracks in the British Imperial power structure are the adoption of the U.S.-Russian framework for Syrian chemical weapons disarmament, ten days ago; the withdrawal of Glass-Steagall-hater Larry Summers's name from contention to head the Federal Reserve, two days ago; the cancellation by Brazilian President Dilma Rousseff of her scheduled state visit to Washington, despite a personal phone call from Obama, because of the NSA spying revelations, one day ago; and a flurry of Congressional and other statements in support of Glass-Steagall on the fifth anniversary of the financial crisis, today. Rep. Marcy Kaptur (D-OH), the original sponsor of H.R. 129, delivered a short speech on the House floor today during morning business, in which she urged her colleagues to co-sponsor her "Return to Prudent Banking Act," and called on the Administration to prosecute those responsible for the crisis (see separate slug). Sen. Elizabeth Warren (D-MA) penned an op-ed in the Boston Globe today, headlined "The 21st Century Glass-Steagall Act would reduce the risk of another crash," which she then sent out by mass e-mail to her contact list. While containing a silly tip-of-the-hat to Dodd-Frank as helping to prevent future crises, she does outline how Glass-Steagall would "dismantle the behemoths" and make sure they no longer "hold our economy hostage."

Rep. Tulsi Gabbard (D-HI) issued a media release decrying the fact that, five years after the crisis, "the biggest banks are even bigger," and notes that Gabbard "is a long-time proponent of common-sense banking reform, including a restoration of the Glass-Steagall Act," and "also co-sponsored H.R. 129." And Robert Reich, who has not always been the most forceful in his support for Glass-Steagall, wrote a syndicated column (published in the Kansas City Star, among others) where he hit hard for Glass-Steagall: "The gambling addiction of Wall Street's biggest banks is more dangerous than ever... Legislation is needed, however, to resurrect the Glass-Steagall Act that once separated commercial banking from casino capitalism... So forget the Volcker rule. Just bring back Glass-Steagall. Congress hosuld have an up-or-down vote on whether to bring it back, so that American can see for itself which of our representatives are in the pockets of the Street."