9.2 C
New York
Thursday, March 28, 2024

New Book Proves U.S. Is Living Under a Disastrous Banking Model from a Century Ago

Courtesy of Pam Martens

It has been the contention of Wall Street On Parade for more than a decade that today’s so-called “universal banks,” also variously known as megabanks or Global Systemically Important Banks (G-SIBs), are a banking model from hell that was thoroughly discredited in the tens of thousands of transcripts and documents released by the U.S. Senate following its multi-year investigation of that structure in the early 1930s.

Arthur E. Wilmarth, Jr.

Arthur E. Wilmarth, Jr.

Now the seminal book proving that theory has just been published. Written by Arthur E. Wilmarth, Jr. and titled Taming the Megabanks: Why We Need a New Glass-Steagall Act, the book brilliantly takes the reader through a riveting guided tour covering the past century and the resurrection of this same disastrous U.S. banking model in 1999.

Taming the Megabanks, Book JacketOxford University Press is the publisher of Wilmarth’s book. We can envision it becoming one of the most important works of this century in providing the impetus for Congress to finally restore the Glass-Steagall Act – the 1933 to 1999 law that mandated the separation of stock trading and stock underwriting firms from federally-insured, deposit-taking banks. That legislation protected the U.S. financial system for 66 years. It took just nine years after its repeal for the universal banks on Wall Street to blow up the financial system in a replay of 1929, taking the U.S. economy along for the gut-wrenching ride.

Wilmarth’s writing is so insightful and profound in its analysis of the similarities between the banks of the late 1920s and today that it feels like the ghost of Ferdinand Pecora might have been whispering in Wilmarth’s ear. Pecora was a former prosecutor from New York who was chosen to preside over much of the early 1930s Senate Banking hearings and investigations of the corrupt Wall Street structure that led to the 1929 crash and Great Depression.

Three banking names that played significant roles in the crash of 1929 and the ensuing Great Depression were National City Bank, JP Morgan, and Chase National Bank. National City Bank was the precursor to today’s Citigroup, the bank that would have collapsed in 2008 except for the largest taxpayer and Federal Reserve bailout in global banking history. JPMorgan and Chase combined in 2000 to create today’s JPMorgan Chase.

Continue Here

 
 
Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments

Stay Connected

157,451FansLike
396,312FollowersFollow
2,280SubscribersSubscribe

Latest Articles

0
Would love your thoughts, please comment.x
()
x