Ex-Citigroup CEO sides with Teamsters on banking reform

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEim3PwZwAq804QVMaUCI8VTdd_8Ur6z6fN6R_yjlDgrYB-dKMccggxPbFXBatrwfutHGpAX9LhbrSCPXUNyJapGQwf0mlrCNKZdnjGoWxSd4CO_V4-E8V64Fpjtq28OE4zCQOATWVQ2C3gj/s1600/plunder.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEim3PwZwAq804QVMaUCI8VTdd_8Ur6z6fN6R_yjlDgrYB-dKMccggxPbFXBatrwfutHGpAX9LhbrSCPXUNyJapGQwf0mlrCNKZdnjGoWxSd4CO_V4-E8V64Fpjtq28OE4zCQOATWVQ2C3gj/s1600/plunder.jpg" /></a><span style="font-family: Verdana, sans-serif;">The Teamsters have long called for financial reform. Now a retired Citigroup chief executive who was once one of Wall Street’s biggest proponents of the creation of mega-banks </span><a href="http://www.huffingtonpost.com/2013/09/09/john-reed-break-up-banks_n_3893687.html?view=print&comm_ref=false" rel="nofollow"><span style="color: blue; font-family: Verdana, sans-serif;">has seen the light</span></a><span style="font-family: Verdana, sans-serif;"><span class="MsoHyperlink"><u><span style="color: blue;">.</span></u></span> John Reed, who led Citigroup from 1984 to 2000 and then served as the head of the New York Stock Exchange, now says banking rules need to be changed to avoid another economic crash. <o:p></o:p></span><br /><span style="font-family: Verdana, sans-serif;"> </span><br /><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Verdana, sans-serif;">Well, better late than never.<o:p></o:p></span></div><span style="font-family: Verdana, sans-serif;"> </span><span style="font-family: Verdana, sans-serif;">Reed led Citigroup -- one of the nation’s largest banks -- when it was ramping up in size. He pushed for a repeal of the </span><a href="http://www.pbs.org/wgbh/pages/frontline/shows/wallstreet/weill/demise.html" rel="nofollow"><span style="color: blue; font-family: Verdana, sans-serif;">Glass-Steagall Act</span></a><span style="font-family: Verdana, sans-serif;"> when Citi wanted to dabble in both investment and commercial banking, which was barred under the law. So in 1999 he and his big banking friends got it changed. But he now says the current business model is broken and the law needs to be reinstated.<o:p></o:p></span><br /><span style="font-family: Verdana, sans-serif;"> </span><br /><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Verdana, sans-serif;">Sens. Elizabeth Warren (D-Mass.), John McCain (R-Ariz.), Angus King (I-Maine) and Maria Cantwell (D-Wash.) </span><a href="http://www.huffingtonpost.com/2013/07/11/glass-steagall-act-elizabeth-warren_n_3580967.html?view=print&comm_ref=false" rel="nofollow"><span style="color: blue; font-family: Verdana, sans-serif;">introduced an updated version of Glass-Steagall</span></a><span style="font-family: Verdana, sans-serif;"> in July that attempts to rein in the financial chaos of Wall Street.<span style="mso-spacerun: yes;">  </span>It would require banks that accept federally insured deposits to focus on traditional lending and not engage in more risky securities trading. But now the lawmakers need to move the process forward.<o:p></o:p></span></div><span style="font-family: Verdana, sans-serif;"> </span><span style="font-family: Verdana, sans-serif;">The current law allows banks to gamble customers’ hard-earned dollars in shady dealings like the creation of derivatives that puts workers’ money at risk.<o:p></o:p></span><br /><span style="font-family: Verdana, sans-serif;"> </span><br /><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Verdana, sans-serif;">While filing legislation that would prevent many of the financial failings that led to the bank bailouts is a good first step, a bill alone isn’t enough. Congress must take action now. Failing to do so will ensure a repeat of the financial meltdown of 2008.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Verdana;">Stay tuned...</span></div>

Citigroup financial reform Glass-Steagall Ex-Citigroup CEO sides with Teamsters on banking reform

The Teamsters have long called for financial reform. Now a retired Citigroup chief executive who was once one of Wall Street’s biggest propo...

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'Let's keep the gamblers out of banks'

<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgw4Om_c568L7zvC4_m0xHaY3r4K3pkzhwuhgODDVF7xFRV0UEAurV6T1u-jjnJ4fs1RHeCs3RHP9rumD1Nyx_RBRahSC9ji4lufO_MljA_rW9Y1Jgh1jVaLT2a_PfzJ3ZxBABVH2YaNriV/s1600/elizabeth+warren.JPG" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="212" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgw4Om_c568L7zvC4_m0xHaY3r4K3pkzhwuhgODDVF7xFRV0UEAurV6T1u-jjnJ4fs1RHeCs3RHP9rumD1Nyx_RBRahSC9ji4lufO_MljA_rW9Y1Jgh1jVaLT2a_PfzJ3ZxBABVH2YaNriV/s320/elizabeth+warren.JPG" width="320" /></a></div>Massachusetts Sen. Elizabeth Warren dropped a bombshell -- actually two -- on federal bank regulators yesterday.<br /><br /><a href="http://wallstreetonparade.com/2013/07/senator-warren-drops-a-bombshell-in-senate-hearing-bipartisan-bill-to-restore-glass-steagall-being-introduced/">Wall Street on Parade</a> reports they were probably expecting a pat on the back because they're requiring banks to keep more money on hand in case they get into trouble (as they did in 2008 when they crashed the economy). Instead, Warren scolded them for failing to put bankers in prison.<br /><br /><a href="http://thehill.com/blogs/regwatch/finance/310479-warren-hammers-regulators-on-trials-for-firms-who-skirt-financial-rules">The Hill</a> reports Warren asked why they chose to fine banks accused of wrongdoing instead of prosecuting them for crimes. She asked for more information about bank violations and the agreements reached with the banks.:<br /><blockquote class="tr_bq">Then the public could evaluate for themselves if you’re really out there fighting on their behalf.</blockquote>(We have an idea...)<br /><br />Warren also announced she and three other senators, including Arizona's John McCain, were introducing a bill to restore <a href="https://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Act">Glass-Steagall</a>. That's a Depression-era law that separated risky gambling on Wall Street with traditional banking. It worked to keep the financial system stable for decades, until the banks managed to get it repealed.<br /><br /><a href="http://wallstreetonparade.com/2013/07/senator-warren-drops-a-bombshell-in-senate-hearing-bipartisan-bill-to-restore-glass-steagall-being-introduced/">Wall Street on Parade</a> reported the regulators stared in silence as Warren described why she was sponsoring the legislation. (They represented Treasury, FDIC, Federal Reserve and Office of the Comptroller of the Currency.) She told them:<br /><blockquote class="tr_bq">“…the four largest banks are now 30 percent larger than they were just five years ago and they have continued to engage in dangerous, high-risk practices. So, later today Mr. Chairman, Senators McCain, Cantwell, King and I will introduce a 21st Century Glass-Steagall Act. For half a century after the Great Depression, Glass-Steagall kept this country safe by separating the risky activities of investment banks from the basic checking and savings accounts that consumers rely on every day.  </blockquote><blockquote class="tr_bq">“The banks lobbied for weaker regulations and eventually the regulators started unraveling Glass-Steagall and finally in 1999 Congress repealed what was left of it. So now we propose a 21st Century Glass-Steagall so that we can return to the basics and try to keep the gamblers out of our banks.  </blockquote><blockquote class="tr_bq">“Now, based on what the regulators did to Glass-Steagall over the past 30 years, I don’t expect that anyone on this panel will jump up and endorse the new Glass-Steagall bill; even so, we’re going to keep pushing for it.”    </blockquote>Stay tuned...<br /><br />

bank criminality Elizabeth Warren Glass-Steagall 'Let's keep the gamblers out of banks'

Massachusetts Sen. Elizabeth Warren dropped a bombshell -- actually two -- on federal bank regulators yesterday. Wall Street on Parade repo...

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