Posted Jul 11, 2013 by Martin Armstrong
There are a group of Senators who want to bring back Glass-Steagall separating commercial banks from investment banks. That was removed by Goldman Sachs’ Robert Rubin under Bill Clinton.
Nevertheless, the Fed is already advising banks that they will not insure losses on the trading side. The Fed has been advising banks they will only cover commercial banking deposits and loans period! Trading losses will be on them.
Glass-Steagall is coming back if they like it or not. The banks are not going to be handed blank checks anymore so the future will be strikingly different.