Thursday, May 20, 2010

Crunch point in the US debate on financial reform

So the Democrats in the US Senate failed yesterday to muster enough votes from their own party to cut the long-lasting debate and move to voting on the final bill itself.

Is that a good thing or a bad one?


It simply means that we are at crunch point regarding what sort of bill will eventually be put to the vote.

In other words, whether all the debates of the last year or so, will produce a reform that is worthwhile or will have been simply a lot of huffing and puffing with no worthwhile change.

On one hand, the delay gives more time for banks to continue lobbying senators; on the other hand, it provides an opportunity for the bill to be toughened .

The most significant toughening lies in Senator Cantwell's amendment that would reinstate the Glass-Steagall Act, so that commercial banking is once again separated from investment banking - which would once again prevent the sort of gambling that took place with ordinary people's pension and other money as well as with the national money of countries such as Greece and Iceland, and with the money of hundreds of municipalities and American and other states that are now therefore either insolvent or on the brink of bankruptcy. Sphere: Related Content

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