Big bank earnings for the second quarter are running well ahead of last year, up anywhere from 19% for Wells Fargo (WFC) to 42% for Citigroup (C), with JP Morgan (JPM) falling in between. But those three banks plus Bank of America (BAC) are now 30% larger than they were just five years ago, and “continue to engage in dangerous high-risk practices,” says Massachusetts Democratic Senator Elizabeth Warren.
She’s one of four senators who recently introduced the 21st Century Glass-Steagall Act, which, like the original 1933 statute, would separate commercial banking from investment banking in order to reduce those risks.
Joining Warren are Sens. Mary Cantwell (D-WA), John McCain (R-AZ) and Angus King, an independent from Maine. Sen. King tells The Daily Ticker that the original Glass-Steagall law was “common sense reform that worked for 70 years” and should not have been repealed. “We’re just trying to go back to theRead More »from New Glass-Steagall Bill is An Attempt to “Go Back to the Future,” Says Sen. King