by Chris Griesedieck
I don’t know who Peter Wallison is, but he does not seem to understand the consequences of re-implementing Glass-Steagall. Or he does, and is willfully ignoring them to irritate me and appease Jamie Dimon.
Anyway, Glass-Steagall was a Depression-era, federal regulation (fully repealed under the Clinton administration after years of chipping away by banking industry lobbyists) that erected a barrier between traditional banking, such as commercial and residential loans, depositor savings and checking accounts, etc., and the more complex and risky world of investment banking. Continue reading