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'''Wall Street reforms''' are reforms or [[Bank regulation in the United States|regulations]] of the [[financial industry]] in the [[United States]]. |
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'''Wall Street Reform''' or '''Financial Reform''' refers to reform of the financial industry and the [[Bank regulation in the United States|regulation]] of the financial industry in the [[United States]]. [[Wall Street]] is the home of the country's two largest [[stock exchange]]s, and "Wall Street" is a [[metonym]] for the American financial sector. Major Wall Street reform bills include the [[Federal Reserve Act]] of 1913, the [[Glass-Steagall Act]] of 1933, the [[Truth in Lending Act]] of 1968, the [[Community Reinvestment Act]] of 1977, the [[Gramm–Leach–Bliley Act]] of 1999, and the [[Sarbanes-Oxley Act of 2002]]. The most recent Wall Street reform bill, the [[Dodd–Frank Wall Street Reform and Consumer Protection Act]], was signed by [[President of the United States]] [[Barack Obama]] on July 22, 2010, following a [[Financial crisis of 2007–08|global financial crisis]]. |
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[[Wall Street]] is the home of the country's two largest [[stock exchange]]s, and "Wall Street" is a [[metonym]] for the [[United States financial sector]]. Major historical Wall Street reform bills include the [[Federal Reserve Act]] of 1913, the [[Glass-Steagall Act]] of 1933, the [[Truth in Lending Act]] of 1968, the [[Community Reinvestment Act]] of 1977, the [[Gramm–Leach–Bliley Act]] of 1999, and the [[Sarbanes-Oxley Act of 2002]]. On July 22, 2010, the most recent Wall Street reform bill, the [[Dodd–Frank Wall Street Reform and Consumer Protection Act]], was signed by [[President of the United States]] [[Barack Obama]], following the [[Financial crisis of 2007–08|global financial crisis]]. |
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== The Glass-Steagall Act of 1933 == |
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The [[Glass-Steagall Act]] of 1933 placed a "wall of separation" between banks and brokerages, which was largely repealed by the [[Financial Services Modernization Act]] of 1999. The bill was enacted during the [[Great Depression]], which began with the [[Wall Street Crash of 1929]]. The [[Gramm–Leach–Bliley Act]] of 1999 repealed the "wall of separation," allowing companies to simultaneously act as [[commercial bank]]s, [[investment bank]]s, and [[insurance company|insurance companies]]. Though some commentators regard the restoration of the 1933 bill as crucial, even calling it "the most vital element of Wall Street reform",<ref>{{cite web|url=http://www.counterpunch.org/martens03262010.html|title=The Most Vital Ingredient in Wall Street Reform Goes Missing|author=Pam Martens|date=2010-03-26|publisher=CounterPunch}}</ref> House Democratic leaders refused to allow an amendment by Rep. [[Maurice Hinchey]] (D-NY) to restore Glass-Steagall as part of the 2009 Frank bill.<ref>{{cite web|url=http://www.thenation.com/doc/20100111/scheer2|title=McCain Gets It, Obama Doesn't|author=Robert Scheer|publisher=The Nation|date=2010-01-06}}</ref> Hinchey introduced his proposal as a separate bill, the [[Glass-Steagall Restoration Act]] of 2009.<ref>{{cite web|url=http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.4375:|title=[Text of H.R. 4375]|publisher=thomas.loc.gov}}</ref> Nonetheless, the "Volcker rule" proposed by the Obama administration has been described as a "new Glass-Steagall Act for the 21st century", as it establishes stringent rules against banks using their own money to make risky investments.<ref>{{cite news|url=http://www.guardian.co.uk/business/2010/jan/21/obama-banks-wall-street-reform|title=Obama announces dramatic crackdown on Wall Street banks: Obama's 'new Glass-Steagall Act' will prevent banks with customer deposits taking risky investment bets|author=Jill Treanor|publisher=The Guardian|date=2010-01-21 | location=London}}</ref> |
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== The Glass–Steagall Act of 1933 == |
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The [[Glass–Steagall Act]] of 1933 placed a "wall of separation" between banks and brokerages, which was largely repealed by the [[Financial Services Modernization Act]] of 1999. The bill was enacted during the [[Great Depression]], which began with the [[Wall Street Crash of 1929]]. The [[Gramm–Leach–Bliley Act]] of 1999 repealed the "wall of separation," allowing companies to simultaneously act as [[commercial bank]]s, [[investment bank]]s, and [[insurance company|insurance companies]]. House Democratic leaders refused to allow an amendment by Rep. [[Maurice Hinchey]] (D-NY) to restore Glass-Steagall as part of the 2009 Frank bill.<ref>{{cite web|url=http://www.thenation.com/doc/20100111/scheer2|title=McCain Gets It, Obama Doesn't|author=Robert Scheer|publisher=The Nation|date=2010-01-06}}</ref> Hinchey introduced his proposal as a separate bill, the Glass-Steagall Restoration Act of 2009.<ref>{{cite web|url=http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.4375:|title=[Text of H.R. 4375]|publisher=thomas.loc.gov|access-date=2010-04-17|archive-date=2016-01-30|archive-url=https://web.archive.org/web/20160130224525/http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.4375:|url-status=dead}}</ref> Nonetheless, the "Volcker rule" proposed by the Obama administration has been described as a "new Glass-Steagall Act for the 21st century", as it establishes stringent rules against banks using their own money to make risky investments.<ref>{{cite news|url=https://www.theguardian.com/business/2010/jan/21/obama-banks-wall-street-reform|title=Obama announces dramatic crackdown on Wall Street banks: Obama's 'new Glass-Steagall Act' will prevent banks with customer deposits taking risky investment bets|author=Jill Treanor|publisher=The Guardian|date=2010-01-21 | location=London}}</ref> |
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The [[Sarbanes-Oxley Act]], by Sen. [[Paul S. Sarbanes]] ([[Democratic Party of the United States|D]]-[[Maryland|MD]]) and Rep. [[Michael G. Oxley]] ([[Republican Party (United States)|R]]-[[Ohio|OH]]), was signed into law by [[George W. Bush]] in July 2002.<ref>{{cite web|url=http://www.pbs.org/newshour/forum/july02/b_ethics.html |title=Wall Street reform |date=August 2002 |publisher=[[Public Broadcasting Service|PBS]] |deadurl=yes |archiveurl=https://web.archive.org/20080617084215/http://www.pbs.org:80/newshour/forum/july02/b_ethics.html |archivedate=June 17, 2008 }}</ref><ref>{{cite web|url=http://thomas.loc.gov/cgi-bin/query/z?c107:H.R.3763:|title=[Text of H.R. 3763 (6 versions)]|publisher=thomas.loc.gov}}</ref> The bill was enacted as a reaction to a number of major [[accounting scandals|corporate and accounting scandals]] including those affecting [[Enron]] and [[WorldCom]]. |
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== Sarbanes–Oxley Act of 2002 == |
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== Dodd-Frank (2010)== |
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The [[Sarbanes–Oxley Act]], by Sen. [[Paul S. Sarbanes]] ([[Democratic Party of the United States|D]]-[[Maryland|MD]]) and Rep. [[Michael G. Oxley]] ([[Republican Party (United States)|R]]-[[Ohio|OH]]), was signed into law by [[George W. Bush]] in July 2002.<ref>{{cite web|url=https://www.pbs.org/newshour/forum/july02/b_ethics.html |title=Wall Street reform |date=August 2002 |publisher=[[Public Broadcasting Service|PBS]] |url-status=dead |archive-url=https://web.archive.org/web/20080617084215/http://www.pbs.org/newshour/forum/july02/b_ethics.html |archive-date=June 17, 2008 }}</ref><ref>{{cite web|url=http://thomas.loc.gov/cgi-bin/query/z?c107:H.R.3763:|title=[Text of H.R. 3763 (6 versions)]|publisher=thomas.loc.gov|access-date=2010-04-17|archive-date=2010-12-07|archive-url=https://web.archive.org/web/20101207015024/http://thomas.loc.gov/cgi-bin/query/z?c107:H.R.3763:|url-status=dead}}</ref> The bill was enacted as a reaction to a number of major [[accounting scandals|corporate and accounting scandals]] including those affecting [[Enron]] and [[WorldCom]]. |
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== Dodd–Frank (2010) == |
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{{Main|Obama financial regulatory reform plan of 2009}} |
{{Main|Obama financial regulatory reform plan of 2009}} |
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As of May 2010, both the House and Senate bills had been passed, but the differences between the bills were to be worked out in [[United States congressional conference committee]]. Differences which |
As of May 2010, both the House and Senate bills had been passed, but the differences between the bills were to be worked out in [[United States congressional conference committee]]. Differences which to be resolved included:<ref>Indiviglio D. (2010). [https://www.theatlantic.com/business/archive/2010/05/the-conference-challenges-congress-faces-for-financial-reform/57241/ The Conference Challenges Congress Faces for Financial Reform]. ''The Atlantic''.</ref> whether the new [[consumer protection]] agency would be independent (Senate) or part of the [[Federal Reserve]]; whether to require banks to issue [[credit derivative]]s in separately capitalized [[subsidiary|affiliate]]s (Senate); how exactly the [[Federal Deposit Insurance Corporation]] (FDIC) will wind down or bail out large institutions which fail; the circumstances under which large institutions could be broken up; a 15 to 1 leverage limit in the House bill; the terms of a Fed audit (continuous as in the House bill or one-time as in the Senate bill); both bills include the Volcker rule which prohibits [[proprietary trading]] by bank holding companies, but both have a caveat which allow for regulators to overrule the rule; both bills propose to regulate [[credit rating agencies]], but the Senate's bill is much stronger. |
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=== House bill === |
=== House bill === |
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H.R. 4173, the [[Wall Street Reform and Consumer Protection Act]] of 2009 by Rep. [[Barney Frank]] ([[Democratic Party of the United States|D]]-[[Massachusetts|MA]]), passed by the House of Representatives in December 2009,<ref>{{cite web|url=http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.4173:|title=[Text of H.R. 4173 (3 versions)]|publisher=thomas.loc.gov}}</ref> and awaiting action by the Senate as of April 2010.<ref>{{cite web|url=http://www.opencongress.org/bill/111-h4173/show|title=H.R.4173 - Wall Street Reform and Consumer Protection Act of 2009|publisher=OpenCongress.org| |
H.R. 4173, the [[Wall Street Reform and Consumer Protection Act]] of 2009 by Rep. [[Barney Frank]] ([[Democratic Party of the United States|D]]-[[Massachusetts|MA]]), passed by the House of Representatives in December 2009,<ref>{{cite web|url=http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.4173:|title=[Text of H.R. 4173 (3 versions)]|publisher=thomas.loc.gov|access-date=2010-04-17|archive-date=2010-11-05|archive-url=https://web.archive.org/web/20101105112200/http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.4173:|url-status=dead}}</ref> and awaiting action by the Senate as of April 2010.<ref>{{cite web|url=http://www.opencongress.org/bill/111-h4173/show|title=H.R.4173 - Wall Street Reform and Consumer Protection Act of 2009|publisher=OpenCongress.org|access-date=2010-04-17}}</ref><ref>{{cite web|url=http://www.huffingtonpost.com/2009/12/18/barney-frank-vs-the-credi_n_397404.html|title=Barney Frank Vs. The Credit Raters (VIDEO)|author=Ben Protess|publisher=Huffington Post Investigative Fund|date=2009-12-18}}</ref> |
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=== Senate bill === |
=== Senate bill === |
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{{Further|Restoring American Financial Stability Act of 2010}} |
{{Further|Restoring American Financial Stability Act of 2010}} |
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[[S.3217]] was introduced by [[Senate Banking Committee]] chairman [[Chris Dodd]] ([[Democratic Party of the United States|D]]-[[Connecticut|CT]]) on April 15, 2010.<ref>{{cite web|url=http://thomas.loc.gov/cgi-bin/query/z?c111:S.3217:|title=[Text of S.3217]|publisher=thomas.loc.gov}}</ref> Dodd's bill included a $50 billion liquidation fund which drew criticism as a continuing bailout, which he was pressured to remove by Republicans and the Obama administration.<ref>{{cite news|url=http://politicalticker.blogs.cnn.com/2010/04/17/white-house-signals-shift-on-wall-street-reform/|title=White House signals shift on Wall Street reform|date=2010-04-17|author=CNN Senior White House Correspondent [[Ed Henry]]|publisher=CNN}}</ref> The Senate bill passed on May 20, 2010. |
[[S.3217]] was introduced by [[Senate Banking Committee]] chairman [[Chris Dodd]] ([[Democratic Party of the United States|D]]-[[Connecticut|CT]]) on April 15, 2010.<ref>{{cite web|url=http://thomas.loc.gov/cgi-bin/query/z?c111:S.3217:|title=[Text of S.3217]|publisher=thomas.loc.gov|access-date=2010-04-17|archive-date=2014-10-17|archive-url=https://web.archive.org/web/20141017040521/http://thomas.loc.gov/cgi-bin/query/z?c111:S.3217:|url-status=dead}}</ref> Dodd's bill included a $50 billion liquidation fund which drew criticism as a continuing bailout, which he was pressured to remove by Republicans and the Obama administration.<ref>{{cite news|url=http://politicalticker.blogs.cnn.com/2010/04/17/white-house-signals-shift-on-wall-street-reform/|title=White House signals shift on Wall Street reform|date=2010-04-17|author=CNN Senior White House Correspondent [[Ed Henry]]|publisher=CNN}}</ref> The Senate bill passed on May 20, 2010. |
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=== Volcker Rule === |
=== Volcker Rule === |
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{{Further|Volcker Rule}} |
{{Further|Volcker Rule}} |
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The |
The [[Volcker Rule]] was proposed by President [[Barack Obama]] in 2010 based on advice by [[Paul Volcker]], and a draft of the proposed legislation was prepared by the [[U.S. Treasury Department]]. It limited any one bank from holding more than 10% of FDIC-insured deposits, and prohibited any bank with a division holding such deposits from using its own capital to make speculative investments. The Volcker rule faced heavy resistance in the Senate and was introduced as part of the subsequent Dodd bill only in a limited form.<ref>{{cite news|url=https://www.wsj.com/articles/SB10001424052748703503804575083823511212204|title='Volcker Rule' Stalls in Senate|publisher=Wall Street Journal|author=Damian Palmetta|date=2010-02-24}}</ref><ref>{{cite news|url=https://www.reuters.com/article/idUSTRE6224B920100303|title=Obama reasserts Volcker rule|author1=Kevin Drawbaugh |author2=Karey Wutkowski |name-list-style=amp |date=2010-03-03|publisher=Reuters}}</ref><ref>{{cite news|url=https://www.reuters.com/article/idUSTRE62E5IZ20100315|title=Factbox: Key elements of Dodd's financial reform bill|publisher=Reuters|date=2010-03-15}}</ref> |
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=== Financial Stability Oversight Council === |
=== Financial Stability Oversight Council === |
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Chaired by the [[United States Secretary of the Treasury]], a new multi-authority oversight body called the Financial Stability Oversight Council of regulators will be established. The council will consist of nine members including regulators from the [[Federal Reserve System]], [[U.S. Securities and Exchange Commission]], [[Federal Housing Finance Agency]], and many other agencies. The main purpose of the council is to identify risk in the [[Financial system]]. Also, the council will look at the interconnectivity of the highly leveraged financial firms and can ask companies to divest holdings if their structure poses a great threat to the Financial system. The council will have a solid control on the operations of the leveraged firms and also help in increasing the transparency.<ref>{{cite web|url=http://www.businessweek.com/news/2010-07-15/congressional-overhaul-maps-the-future-of-financial-regulation.html|archive-url=https://web.archive.org/web/20100718092508/http://www.businessweek.com/news/2010-07-15/congressional-overhaul-maps-the-future-of-financial-regulation.html|url-status=dead|archive-date=July 18, 2010|title='Congressional Overhaul Maps the Future of Financial Regulation'|publisher=Bloomberg Businessweek|author1=David Scheer |author2=Gregory Mott |author3=Lawrence Roberts |date=2010-07-15}}</ref> |
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Chaired by the [[United States Secretary of the Treasury]], a new multi-authority oversight body called the Financial Stability Oversight Council of regulators will be established. The council will consist of nine members including regulators from the [[Federal Reserve System]], [[U.S. Securities and Exchange Commission]], [[Federal Housing Finance Agency]], and many other agencies. The main purpose of the council is to identify risk in the [[Financial system]]. Also, the council will look at the interconnectivity of the highly leveraged financial firms and can ask companies to divest holdings if their structure poses a great threat to the Financial system. The council will have a solid control on the operations of the leveraged firms and also help in increasing the transparency.<ref>{{cite web|url=http://www.businessweek.com/news/2010-07-15/congressional-overhaul-maps-the-future-of-financial-regulation.html|title='Congressional Overhaul Maps the Future of Financial Regulation'|publisher=Bloomberg Businessweek|author=David Scheer, Gregory Mott, Lawrence Roberts|date=2010-07-15}}</ref> |
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== Wall Street Reform Plan (2016) == |
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In 2016, 170 Economists, Financial Experts, and Academics Back Bernie Sanders’ Wall Street Reform Plan. In the letter supporting Bernie Sander’s Financial Reform Plan <ref>[http://www.dailykos.com/…/-170-Top-Economists-Pen-Letter-Ba…]</ref> |
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<ref>[http://www.ign.com/…/170-of-the-worlds-top-economists-have…/]</ref> |
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<ref>[http://progressiveissue.com/170-top-economists-back-bernie…/]</ref> |
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''"In our view, Sen. Bernie Sanders’ plan for comprehensive financial reform is critical for avoiding another “too-big-to-fail” financial crisis. The Senator is correct that the biggest banks must be broken up and that a new 21st Century Glass-Steagall Act, separating investment from commercial banking, must be enacted. |
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Wall Street’s largest banks are now far bigger than they were before the crisis, and they still have every incentive to take excessive risks. No major Wall Street executive has been indicted for the fraudulent behavior that led up to the 2008 crash, and fines imposed on the banks have been only a fraction of the banks’ potential gains. In addition, the banks and their lobbyists have succeeded in watering down the Dodd-Frank reform legislation, and the financial institutions that pose the greatest risk to our economy have still not devised sufficient “living wills” for winding down their operations in the event of another crisis. |
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Secretary Hillary Clinton’s more modest proposals do not go far enough. They call for a bit more oversight and a few new charges on shadow banking activity, but they leave intact the titanic financial conglomerates that practice most shadow banking. As a result, her plan does not adequately reduce the serious risks our financial system poses to the American economy and to individual Americans. Given the size and political power of Wall Street, her proposals would only invite more dilution and finagle. The only way to contain Wall Street’s excesses is with reforms sufficiently bold and public they can’t be watered down. That’s why we support Senator Sanders’ plans for busting up the biggest banks and resurrecting a modernized version of Glass Steagall.”''<ref>[ https://berniesanders.com/…/up…/2016/01/Wall-St-Letter-1.pdf], Wall Street Letter.</ref> |
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<ref>[http://usuncut.com/…/170-top-economists-back-bernie-sander…/], 170 economists back Bernie Sanders.</ref> |
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<ref>[http://www.democraticunderground.com/1017325686#post10]</ref> |
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Below are the economists, financial experts, and academics who signed the letter. |
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{{col-3}} |
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Signers (Institutional listing for identification purposes only) <ref>[ https://berniesanders.com/…/up…/2016/01/Wall-St-Letter-1.pdf], Wall Street Letter.</ref> |
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<ref>[http://usuncut.com/…/170-top-economists-back-bernie-sander…/], 170 economists back Bernie Sanders.</ref> |
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<ref>[http://www.democraticunderground.com/1017325686#post10]</ref> |
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# Robert Reich, University of California Berkeley |
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# Robert Hockett, Cornell University |
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# James K. Galbraith, University of Texas |
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# Dean Baker, Center for Economic and Policy Research |
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# Christine Desan, Harvard Law School |
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# Jeff Connaughton, Former Chief of Staff, Senator Ted Kaufman |
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# William Darity Jr., Duke University |
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# Eileen Appelbaum, Center for Economic and Policy Research |
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# Brad Miller, Former U.S. Congressman and Senior Fellow, Roosevelt Institute |
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# William K. Black, University of Missouri-Kansas City |
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# Lawrence Rufrano, Research, Federal Reserve Board, 2005-2015 |
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# Darrick Hamilton, New School for Social Research |
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# Peter Eaton, University of Missouri-Kansas City |
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# Eric Hake, Catawba College |
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# Geoff Schneider, Bucknell University |
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# Dell Champlin, Oregon State University |
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# Antoine Godin, Kingston University, London, UK |
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# John P. Watkins, Westminster College |
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# Mayo C. Toruño, California State University, San Bernardino |
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# Charles K. Wilber, Fellow, Joan B. Kroc Institute for International Peace Studies, University of Notre Dame |
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# Fadhel Kaboub, Denison University |
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# Flavia Dantas, Cortland State University |
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# Mitchell Green, Binzgar Institute |
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# Bruce Collier, Education Management Information Systems |
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# Winston H. Griffith, Bucknell University |
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# Zdravka Todorova, Wright State University |
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# David Barkin, Universidad Autonoma Metropolitana-Xochimilco |
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# Rick Wicks, Göteborg, Sverige (Sweden) & Anchorage, Alaska |
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# Philip Arestis, University of Cambridge |
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# Amitava Krishna Dutt, University of Notre Dame |
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# John F. Henry, Levy Economics Institute |
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# James G. Devine, Loyola Marymount University |
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# John Davis, Marquette University |
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# Gary Mongiovi, St. John’s University |
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# Eric Tymoigne, Lewis & Clark College |
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# Trevor Roycroft, Ohio University |
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# James Sturgeon, University of Missouri-Kansas City |
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# Spencer J. Pack, Connecticut College |
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# Thomas Kemp, University of Wisconsin – Eau Claire |
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# Ronnie Phillips, Colorado State University |
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# John Dennis Chasse, SUNY at Brockport |
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# Pavlina R. Tcherneva, Bard College |
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# Silvio Guaita, Institution, Federal University of Rio de Janeiro (UFRJ) |
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# Glen Atkinson, University of Nevada, Reno |
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# William Van Lear, Belmont Abbey College |
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# James M. Cypher, Universidad Autónoma de Zacatecas |
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# Philip Pilkington, Political Economy Research Group, Kingston University |
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# Eric Hoyt, UMass-Amherst |
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# Jon D. Wisman, American University |
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# James K. Boyce, University of Massachusetts Amherst |
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# Hendrik Van den Berg, Professor Emeritus, Universities of Nebraska |
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# Thomas E. Lambert, Northern Kentucky University |
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# Michael Nuwer, SUNY Potsdam |
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# Nikka Lemons, The University of Texas-Arlington |
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# Scott T. Fullwiler, Wartburg College |
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# Charles M A. Clark, St. John’s University |
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# John T. Harvey, Texas Christian University |
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# Daphne Greenwood, University of Colorado-Colorado Springs |
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# Gerald Epstein, University of Massachusetts Amherst |
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# Mohammad Moeini-Feizabadi, University of Massachusetts |
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# Rebecca Todd Peters, Elon University |
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# Andres F. Cantillo, University of Missouri-Kansas City |
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# Michael Meeropol, Professor Emeritus of Economics, Western New England University |
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# Robert H. Scott III, Monmouth University |
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# Timothy A Wunder, Department of Economics University of Texas- Arlington |
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# Mariano Torras, Adelphi University |
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# Gennaro Zezza, Levy Economics Institute |
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# Wolfram Elsner, University of Bremen |
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# Larry Allen, Lamar University |
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# John Miller, Wheaton College |
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# Chris Tilly, UCLA |
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# Sean Flaherty, Franklin and Marshall College |
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# Clifford Poirot, Shawnee State University |
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# Anita Dancs, Western New England University |
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# Calvin Mudzingiri, University of the Free State |
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# Roger Even Bove, West Chester University |
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# Andrea Armeni, Transform Finance |
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# Anwar Shaikh, New School for Social Research |
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# Steven Pressman, Colorado State University |
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# Frank Pasquale, University of Maryland, Carey School of Law |
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# John Weeks, SOAS, University of London |
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# Matías Vernengo, Bucknell University |
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# Thomas Masterson, Levy Economics Institute |
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# Antonio Callari, Franklin and Marshall College |
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# Avraham Baranes, Rollins College |
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# Janet Spitz, the College of Saint Rose |
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# Nancy Folbre, University of Massachusetts Amherst |
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# Jennifer Taub, Vermont Law School |
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# Irene van Staveren, Erasmus University |
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# Yavuz Yaşar, University of Denver |
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# Scott McConnell, Eastern Oregon University |
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# Don Goldstein, Allegheny College |
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# J. Pérez Oya, Retired UN secretariat (Spain) |
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# Elaine McCrate, University of Vermont |
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# Thomas E. Weisskopf, University of Michigan |
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# Jeffrey Zink, Morningside College |
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# Scott Jeffrey, Monmouth University |
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# Lourdes Benería, Cornell University |
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# Frank Thompson, University of Michigan100. Baban Hasnat, The College at Brockport, State University of New York |
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# Baban Hasnat, The College at Brockport, State University of New York |
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# Ilene Grabel, University of Denver |
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# Tara Natarajan, Saint Michael’s College |
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# Leanne Ussher, Queens College, City University of New York |
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# Kathleen McAfee, San Francisco State University |
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# Victoria Chick, University College London |
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# Steve Keen, Kingston University |
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# Heidi Mandanis Schooner, The Catholic University of America |
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# Louis-Philippe Rochon, Laurentian University |
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# Jamee K. Moudud, Professor of Economics, Sarah Lawrence College |
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# Timothy A. Canova, Shepard Broad College of Law, Nova Southeastern University |
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# Karol Gil Vasquez, Nichols College |
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# Mark Haggerty, University of Maine |
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# Luis Brunstein University of California, Riverside |
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# Cathleen Whiting, Willamette University |
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# William Waller, Hobart and William Smith Colleges |
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# Kade Finnoff, University of Massachuettes-Boston |
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# Maarten de Kadt, Independent Economist |
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# Timothy Koechlin, Vassar College |
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# Ceren Soylu, University of Massachusetts-Amherst |
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# Dorene Isenberg, University of Redlands |
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# Barbara Hopkins, Wright State University |
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# Matthew Rice, University of Missouri-Kansas City |
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# David Gold, The New School for Social Research |
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# Cyrus Bina, University of Minnesota |
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# Mark Paul, University of Massachusetts-Amherst |
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# Xuan Pham, Rockhurst University |
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# Erik Dean, Portland Community College |
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# Arthur E. Wilmarth, Jr., George Washington University Law School |
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# Rohan Grey, President, Modern Money Network |
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# Tamar Diana Wilson, University of Missouri—St. Louis |
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# Radhika Balakrishanan, Rutgers University |
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# Alla Semenova, SUNY Potsdam |
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# Yeva Nersisyan, Franklin and Marshall College |
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# Linwood Tauheed, University of Missouri-Kansas City |
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# Michael Perelman, California State University, Chico |
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# Janet T. Knoedler, Bucknell University |
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# David Laibman, Brooklyn College and Graduate School, City University of New York |
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# Ann Pettifor, Director, Policy Research in Macroeconomics, London |
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# Steve Schifferes, City University London |
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# Al Campbell, University of Utah |
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# Faith Stevelman, New York Law School |
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# Kathleen C. Engel, Suffolk University Law School |
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# Jack Wendland, University of Missouri-Kansas City |
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# Ruxandra Pavelchievici, University of Nice Sophia Antipolis |
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# Zoe Sherman, Merrimack College |
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# Donald St. Clair, CFP, Financial Planning Assoc. of Northern California |
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# Carolyn McClanahan, CFP, Life Planning Partners, Inc. |
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# Thomas Ferguson, Senior Fellow, Roosevelt Institute |
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# Saule T. Omarova, Cornell University |
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# Josh Ryan-Collins, City University, London |
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# June Zaccone, Hofstra University |
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# Alex Binder, Franklin & Marshall College |
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# Albena Azmanova, University of Kent, Brussels School of International Studies |
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# Hans G. Ehrbar, University of Utah |
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# Devin T. Rafferty, St. Peter’s University |
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# Reynold F. Nesiba, Augustana University |
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# David Zalewski, Providence College |
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# Claudia Chaufan, University of California-San Francisco |
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# L. Randall Wray, Levy Economics Institute and Bard College |
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# Richard B. Wagner, JD, CFP, WorthLiving LLC |
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# Joseph Persky, University of Illinois-Chicago |
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# Julie Matthaei, Wellesley College |
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# Peter Spiegler, University of Massachuetts-Amherst |
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# James Ronald Stanfield, Colorado State University |
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# William D. Pitney, CFP, Director of Advocacy, FPA of Silicon Valley |
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# Ora R. Citron, CFP, Oak Tree Wealth Management |
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# Susan Webber, Former Associate at Goldman, Sachs & Co. |
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# Richard D. Wolff, Democracy at Work and New School for Social Research |
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# Mu-Jeong Kho, University College London |
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# Kevin Furey, Chemeketa Community College <ref>[ https://berniesanders.com/…/up…/2016/01/Wall-St-Letter-1.pdf], Wall Street Letter.</ref> |
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<ref>[http://usuncut.com/…/170-top-economists-back-bernie-sander…/], 170 economists back Bernie Sanders.</ref> |
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<ref>[http://www.democraticunderground.com/1017325686#post10]</ref> |
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{{col-end}} |
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== See also == |
== See also == |
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== References == |
== References == |
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{{reflist}} |
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<references /> |
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{{Bank regulation in the United States}} |
{{Bank regulation in the United States}} |
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Latest revision as of 14:59, 12 December 2023
Wall Street reforms are reforms or regulations of the financial industry in the United States.
Wall Street is the home of the country's two largest stock exchanges, and "Wall Street" is a metonym for the United States financial sector. Major historical Wall Street reform bills include the Federal Reserve Act of 1913, the Glass-Steagall Act of 1933, the Truth in Lending Act of 1968, the Community Reinvestment Act of 1977, the Gramm–Leach–Bliley Act of 1999, and the Sarbanes-Oxley Act of 2002. On July 22, 2010, the most recent Wall Street reform bill, the Dodd–Frank Wall Street Reform and Consumer Protection Act, was signed by President of the United States Barack Obama, following the global financial crisis.
The Glass–Steagall Act of 1933[edit]
The Glass–Steagall Act of 1933 placed a "wall of separation" between banks and brokerages, which was largely repealed by the Financial Services Modernization Act of 1999. The bill was enacted during the Great Depression, which began with the Wall Street Crash of 1929. The Gramm–Leach–Bliley Act of 1999 repealed the "wall of separation," allowing companies to simultaneously act as commercial banks, investment banks, and insurance companies. House Democratic leaders refused to allow an amendment by Rep. Maurice Hinchey (D-NY) to restore Glass-Steagall as part of the 2009 Frank bill.[1] Hinchey introduced his proposal as a separate bill, the Glass-Steagall Restoration Act of 2009.[2] Nonetheless, the "Volcker rule" proposed by the Obama administration has been described as a "new Glass-Steagall Act for the 21st century", as it establishes stringent rules against banks using their own money to make risky investments.[3]
Sarbanes–Oxley Act of 2002[edit]
The Sarbanes–Oxley Act, by Sen. Paul S. Sarbanes (D-MD) and Rep. Michael G. Oxley (R-OH), was signed into law by George W. Bush in July 2002.[4][5] The bill was enacted as a reaction to a number of major corporate and accounting scandals including those affecting Enron and WorldCom.
Dodd–Frank (2010)[edit]
As of May 2010, both the House and Senate bills had been passed, but the differences between the bills were to be worked out in United States congressional conference committee. Differences which to be resolved included:[6] whether the new consumer protection agency would be independent (Senate) or part of the Federal Reserve; whether to require banks to issue credit derivatives in separately capitalized affiliates (Senate); how exactly the Federal Deposit Insurance Corporation (FDIC) will wind down or bail out large institutions which fail; the circumstances under which large institutions could be broken up; a 15 to 1 leverage limit in the House bill; the terms of a Fed audit (continuous as in the House bill or one-time as in the Senate bill); both bills include the Volcker rule which prohibits proprietary trading by bank holding companies, but both have a caveat which allow for regulators to overrule the rule; both bills propose to regulate credit rating agencies, but the Senate's bill is much stronger.
House bill[edit]
H.R. 4173, the Wall Street Reform and Consumer Protection Act of 2009 by Rep. Barney Frank (D-MA), passed by the House of Representatives in December 2009,[7] and awaiting action by the Senate as of April 2010.[8][9]
Senate bill[edit]
S.3217 was introduced by Senate Banking Committee chairman Chris Dodd (D-CT) on April 15, 2010.[10] Dodd's bill included a $50 billion liquidation fund which drew criticism as a continuing bailout, which he was pressured to remove by Republicans and the Obama administration.[11] The Senate bill passed on May 20, 2010.
Volcker Rule[edit]
The Volcker Rule was proposed by President Barack Obama in 2010 based on advice by Paul Volcker, and a draft of the proposed legislation was prepared by the U.S. Treasury Department. It limited any one bank from holding more than 10% of FDIC-insured deposits, and prohibited any bank with a division holding such deposits from using its own capital to make speculative investments. The Volcker rule faced heavy resistance in the Senate and was introduced as part of the subsequent Dodd bill only in a limited form.[12][13][14]
Financial Stability Oversight Council[edit]
Chaired by the United States Secretary of the Treasury, a new multi-authority oversight body called the Financial Stability Oversight Council of regulators will be established. The council will consist of nine members including regulators from the Federal Reserve System, U.S. Securities and Exchange Commission, Federal Housing Finance Agency, and many other agencies. The main purpose of the council is to identify risk in the Financial system. Also, the council will look at the interconnectivity of the highly leveraged financial firms and can ask companies to divest holdings if their structure poses a great threat to the Financial system. The council will have a solid control on the operations of the leveraged firms and also help in increasing the transparency.[15]
See also[edit]
References[edit]
- ^ Robert Scheer (2010-01-06). "McCain Gets It, Obama Doesn't". The Nation.
- ^ "[Text of H.R. 4375]". thomas.loc.gov. Archived from the original on 2016-01-30. Retrieved 2010-04-17.
- ^ Jill Treanor (2010-01-21). "Obama announces dramatic crackdown on Wall Street banks: Obama's 'new Glass-Steagall Act' will prevent banks with customer deposits taking risky investment bets". London: The Guardian.
- ^ "Wall Street reform". PBS. August 2002. Archived from the original on June 17, 2008.
- ^ "[Text of H.R. 3763 (6 versions)]". thomas.loc.gov. Archived from the original on 2010-12-07. Retrieved 2010-04-17.
- ^ Indiviglio D. (2010). The Conference Challenges Congress Faces for Financial Reform. The Atlantic.
- ^ "[Text of H.R. 4173 (3 versions)]". thomas.loc.gov. Archived from the original on 2010-11-05. Retrieved 2010-04-17.
- ^ "H.R.4173 - Wall Street Reform and Consumer Protection Act of 2009". OpenCongress.org. Retrieved 2010-04-17.
- ^ Ben Protess (2009-12-18). "Barney Frank Vs. The Credit Raters (VIDEO)". Huffington Post Investigative Fund.
- ^ "[Text of S.3217]". thomas.loc.gov. Archived from the original on 2014-10-17. Retrieved 2010-04-17.
- ^ CNN Senior White House Correspondent Ed Henry (2010-04-17). "White House signals shift on Wall Street reform". CNN.
{{cite news}}:|author=has generic name (help) - ^ Damian Palmetta (2010-02-24). "'Volcker Rule' Stalls in Senate". Wall Street Journal.
- ^ Kevin Drawbaugh & Karey Wutkowski (2010-03-03). "Obama reasserts Volcker rule". Reuters.
- ^ "Factbox: Key elements of Dodd's financial reform bill". Reuters. 2010-03-15.
- ^ David Scheer; Gregory Mott; Lawrence Roberts (2010-07-15). "'Congressional Overhaul Maps the Future of Financial Regulation'". Bloomberg Businessweek. Archived from the original on July 18, 2010.
