What a decade will do. The House is considering bringing back Great Depression-era law Glass-Steagall, which Sandy Weill and his Citigroup merger helped smash apart in the late ’90s.
Bloomberg: The U.S. House is considering reinstituting the Depression-era Glass-Steagall Act, which barred bank holding companies from owning other financial companies, Majority Leader Steny Hoyer said today.
A renewal of the 1933 law “is certainly under discussion” by House members, Hoyer, a Maryland Democrat, told reporters in Washington. The Glass-Steagall law was repealed in 1999.
Hoyer made the comments when asked whether Congress and the Obama administration could do more to persuade banks to make more business loans to get credit flowing into the economy.
“As someone who voted to repeal Glass-Steagall, maybe that was a mistake,” Hoyer told reporters.