October 14, 2015
By Paula Dwyer
Democrats have gotten themselves entangled in a nasty, complicated and ultimately unnecessary debate over an obscure financial law that Congress repealed 16 years ago.
The debate boils down to this: Did the elimination of the 1933 Glass-Steagall Act, which erected a firewall between commercial and investment banking, cause the 2008 financial crisis?
The Democratic base appears to side with Sanders and O'Malley, whose intellectual guru on this issue is Joseph Stiglitz, the Nobel Prize-winning economist, and whose most vocal proponent is Senator Elizabeth Warren. To them, the return of Glass-Steagall, originally adopted in the Depression after the 1929 stock-market crash, would mean busting up the big banks.
Many Democrats seem to read into Clinton's rejection of that solution a cynical attempt to keep her Wall Street donors happy. They also believe she is trying to protect the legacy of her husband, on whose watch Glass-Steagall was withdrawn in 1999.
Read the full article at Bloomberg View: Glass-Steagall Is a Debate Democrats Don't Need