Robert Reich: "Wall Street is on the road to another crisis," and the only solution is Glass-Steagall

In a 9 October column on his website entitled “Hillary, Bernie, and the Banks,” former Clinton Administration Labor Secretary Robert Reich issues a direct warning that “Wall Street is on the road to another crisis,” and that the only solution is resurrecting Glass-Steagall.
Reich starts off by saying that “giant Wall Street banks continue to threaten the well being of millions of Americans.” He notes presidential pre-candidate Bernie Sanders’ support for Glass-Steagall, Hillary’s attempts to deflect the subject, and the Republicans’ “don’t worry” stance. “Clearly, there is reason to worry,” he continues, noting the increase of Wall Street ownership of banking assets to over 45 per cent, and the “hidden federal guarantee” which they are counting on, which he says is worth over “$80 billion a year to the big banks.” They expect to be bailed out if there’s trouble, and “they’ll almost certainly get into trouble again if nothing dramatic is done to stop them.”
“Wall Street is on the road to another crisis,” and it would “take a huge toll”—on the American people.
He then dissects Hillary’s proposals of this week to show that they amount to nothing but an invitation to “more dilution and finagle,” à la Dodd-Frank. Conclusion: “The only way to contain the Street’s excesses is with reforms so big, bold, and public they can’t be watered down—busting up the biggest banks and resurrecting Glass-Steagall.”

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