Nomi Prins, author of the just-released All the Presidents’ Bankers, issues a firm call for reinstating Franklin Roosevelt’s 1933 Glass-Steagall law as the way to finally put an end to the dominance of the Big Six Banks over “not just the U.S. banking industry, but American and global finance, traversing the power corridor between the White House and Wall Street to help themselves … in good times and bad, in partnership with the President.” Prins’s article appeared in the April 9 New York Daily News.
The Big Six banks today are “largely combinations … of the same Big Six banks that thrived through the Panic of 1907, Crash of 1929, the Bay of Pigs, the 1990s merger mania, and the recent financial crisis of 2008,” Prins explains. Throughout that period, “financial and foreign policy was fashioned through personal connections to the Presidents.” Today, these “monstrosities” hold $9.4 trillion, or 84% of U.S. FDIC-insured deposits, $12.5 trillion, or 85% of all U.S. bank assets—and control 96% of all U.S., and 43% of the $693 trillion of global derivatives positions.
Rather than a democracy or a republic, America today operates “more as a plutocracy on behalf of the upper caste,” Prins concludes. Nor does it matter which party is in power. The same “banking caste” runs the show, and the American people suffer. “American inequity is reaching pre-1929 hieghts” today. The only sane solution is to break up the banks “in such a manner as to split our deposits and taxpayers’ dollars from their speculative activity—by finally reinstituting the Glass-Steagall Act of 1933.”
On the other side of the Atlantic, Muhammad Jawed writes from London in the Friday’s edition of Arab News, attacking the growth of speculative activity by the Too Big To Fail banks, which has continued unmolested, despite post-2008 promises that speculative banking operations were going to be broken up. “The completely sensible division was what existed in the U.S., thanks to the post-Depression Glass-Steagall legislation of 1933,” he argues, one that also existed in the United Kingdom between speculative Merchant banks and retail banks. Yet investment banks and speculative operations continue their criminal speculative activity, unfettered, to this day, he concludes.