No Going Back: Why we cannot restore glass-steagall’s segregation of banking and finance Jan Kregel

Recently, a number of authoritative voices have called for a return to the New Deal Glass-Steagall legislation as the most appropriate response to the clear failure of the 1999 Financial Modernization Act to provide stability of the financial system. However, a clear understanding of the 1933 Banking Act, and subsequent regulatory interpretation and legislation suggest that this would be difficult, if not impossible. A new Glass-Steagall Act would have to be substantially different from the original, and some of the internal structural contradictions that led to its demise remedied.

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