WASHINGTON - (Business Wire) This Thursday marks the 10-year anniversary of a milestone in financial deregulation: the repeal of the Glass-Steagall Act of 1933. The Act, among other critical banking reforms, prevented bank holding companies from owning other financial institutions. On November 12, 1999, after decades of deregulation across the banking sector, this provision was repealed by the Gramm-Leach-Bliley Act. This capstone of deregulation removed the final protections blocking commercial banks from engaging in the excessive speculation and risky insurance and derivative products that led to the market and debt bubble of the 2000s and eventually, last fall's near-collapse of the banking industry, now bolstered by trillions of dollar of federal subsidies. On November 10, 2009, the national public policy center Demos will hold a press teleconference briefing to address today's dire need for the crucial banking and consumer protection reforms ushered in by Glass-Steagall, how its repeal helped lead to dangerous consolidation of the industry and the reckless practices that fueled the recent banking crisis, and offer a policy reform plan to protect the US household economy and prevent a future financial industry collapse.
The press teleconference call will occur a week after the announcement that the U.K. will spin off divisions of the largest banks that received bailouts, and at a time when increasing numbers of financial industry experts and elected officials are calling for similar reforms in the U.S.
WHEN:
*Tuesday, November 10, 2009
*12:00 PM EST until conclusion of Q&A
CALL INFORMATION:
* US/Canada Dial-in #: (888) 491 - 8283
* International #: (281) 540 – 4975
*Conference ID: 40451536
WHO:
--Tamara Draut, Vice President of Policy and Programs at Demos (Moderator)
--Heather McGhee, Director, Demos’ Washington DC Office
--Nomi Prins, Demos Senior Fellow and author of “It Takes a Pillage: Behind the Bailouts, Bonuses and Backroom Deals from Washington to Wall Street”
Please RSVP to Timothy Rusch, Demos, (212) 389-1407 or trusch@demos.org (email preferred)
Copies of a background briefing on the history of Glass-Steagall and an outline for future reform, as well as a comprehensive bank bailout tally, will be available at www.demos.org.
Demos
Timothy Rusch, 212-389-1407
trusch@demos.org
