Courtesy of Pam Martens.
FDIC: Not Credible
The U.S. Senate has been holding hearings since June which show a clear rethinking on what type of legislation it must enact going forward to achieve meaningful reforms of Wall Street and protect the economy from its excesses.
The 849-page Dodd-Frank financial reform legislation, enacted four years ago in 2010, mandated 398 new rules; just 208 of those rules, or 52 percent, have been enacted and none of them seem to be reining in excesses on Wall Street.
To understand why Dodd-Frank has been such a failure in reforming Wall Street conduct, one need only read the following sentence and think about it for a moment:
The above sentence refers to the 37-page legislation put in place in 1933 after Congress had thoroughly investigated the causes of the 1929-1932 stock market crash that set off the Great Depression and found the core cause to have been Wall Street investment banks having access to savers’ bank deposits to make wild speculative gambles in securities. This legislation is known today as the Glass-Steagall Act, named after Senator Carter Glass and House Rep Henry Steagall who led the effort to pass the legislation.
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