Throwback Thursday: Morgan Stanley, E*Trade, and the 1930s

When it announced its $13 billion deal for E*Trade, Morgan Stanley reminded us of the reason it was created during the 1930s.

Throwback Thursday: The Best Banking Regulation

Today’s #TBT will look back at the Glass-Steagall Act of 1933. But first… Financial Trust The Chicago Booth/Kellogg School Financial Trust Index is a trust yardstick. Answered by approximately one thousand participants, the Index survey touches topics that range from…

A Too Big to Fail Tale

Overseeing big banks, regulators are faced with a too big to fail tradeoff that began with Glass Steagall and continues today with Dodd Frank.

The Top 19

Are 19 banks “too big to fail?” Listening to Bloomberg radio, I heard that four banking firms control close to 50 percent of their industry’s assets, that the top 19 control 85 percent, and that the bottom 8000 control 15 per cent.  An…

Deja Vu Glass-Steagall?

Thinking back to Glass Steagall (and related 1930s legislation) which was formally repealed in 1999 (summarized in “It’s Complicated”, my 1/17 blog), there were five problem areas that sound remarkably similar to today’s challenges: 1. Abuse of diversified investment services.…

It’s Complicated

Oversimplification concerns me. Some people are saying we should resuscitate Glass-Steagall. Passed in 1933, the Glass-Steagall Act (Banking Act of 1933) prohibited commercial banks from engaging in investment banking activities and created the FDIC. Also a part of 1933 legislation,…