THE HILL: Senate Democratic leaders have shown little appetite for taking on Wall Street before Election Day, despite urging by one of their star recruits, Massachusetts Senate candidate Elizabeth Warren.
Warren has called on Congress to resurrect the 1933 Glass-Steagall Act, which established a firewall between investment banks, which traditionally specialized in speculative trades, and commercial banks, which historically earned money primarily from lending…
For more than six decades, the law prohibited commercial banks from engaging in the risky trading business of investment banks, containing the national economic impact of financial meltdowns. The lack of a firewall in 2008 allowed big commercial banks such as Citibank to get sucked up in the financial crisis, freezing the credit businesses rely on… (more)
