The Costco Connection - October 2013

from members:
from members:

YES NO

Trey Lewis Huntsville, AL

It would be
another law on
the books that
serves no purpose
other than a
politician being able to say
he or she voted for it.

John G. Musial Brewster, NY

Most consumers
want checking and
savings accounts,
while investment
banks appeal to
those who have income to
invest [and] advisers.

Steve Harding Hugo, MN

Let’s let the
market decide
these matters
with its pocket-
book rather than
through legislation.

Sherry Landers Owens Cross Roads, AL

I prefer to make
the decision as to
[how my money
is invested]. I do
not need my
commercial bank to make
those choices for me.

Johan Scholte St. George, UT

It would hurt
credit unions and
small banks,
causing higher
rates for the
regular person, and lead to
a bailout from government.

Erin White Port Angeles, WA

It would help prevent fraud and abuse of clients.

Find out more about this topic on the Web:

• www.marginalrevolution.com (search “The puzzling return of Glass-Steagall”)

• www.thinkprogress.org (search “Break up big banks”)

• www.washingtonpost.com/blogs (search “Warren, McCain, Glass-Steagall”)

• http://tv.msnbc.com (search “Warren, McCain, Glass-Steagall”)

■ INFORMEDdebate

A BIPARTISAN GROUP of lawmakers has introduced a new version of the 1933 banking legislation (the Glass-Steagall Act) that would separate traditional commercial banks, which have savings and checking accounts insured by the Federal Deposit Insurance Corporation, from financial institutions that engage in riskier, uninsured activities.

Supporters of the move say it will reduce the size of banks considered “too big to fail,” offer more protection for depositors and minimize the possibility of a government bailout like the one in 2008.

Opponents argue that mixing activities had little to do with bank failures and the proposed legislation does little to protect the public from the type of devastation recently experienced. Worse, they add, it threatens to distract attention from legitimate reform efforts.