You're listening to the Corbett Report. Corbett report. Corbett report.

Corbett.com.

Welcome back ladies and gentlemen. Welcome back to the Corbett Report. I'm your

host as always, James Corbett of Corbett.com coming to you from the sunny climes of Western

Japan here on the 26th day of May 2017.

Welcome to episode 317 of the Corporate Report Podcast,

The Truth About Glass-Steagall.

Now if we cast our minds back, I'm sure we can all see it unfolding across the movie screen

of our minds with the inevitability of the most nightmarish horror flick the 1990s repeal of the Glass-Steagall Act

leading through the housing bubble of the early 2000s into the subprime meltdown

of 2007 the collapse of Lehman in 2008, and the global

financial crisis. I think we all know how that story goes.

There are risks involved in underwriting and dealing in securities and we decided

that we would recommend the necessary changes only because we believe that a framework can be put in place that can assure that the potential risks from securities activities can be effectively managed.

The purpose of the hearing is to get Chairman Greenspan's views on what should be the restructuring

of the banking industry if there should be a restructuring between now and March the 1st we're going to have to decide

whether all bets are off or whether Congress should be a player in this and decide

that Commercial Banks should get into the investment bank.

Chairman Greenspan is here with a proposal that we should indeed repeal the Glass-Steagall Act.

It is true that the Glass-Steagall law is no longer appropriate to the economy in which we lived.

It worked pretty well for the industrial economy, which was highly organized, much more centralized, and much more nationalized

than the one in which we operate today.

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