A discussion of the politics of bank reform and how a concerted and expensive lobbying effort finally paid off in 1999.
# 26302 | 1,630 words | 14 sources | MLA | 2002 |
Published on Apr 29, 2003 in Business (Finance, Investment and Banking) , Political Science (Lobbyists and Pressure Groups) , Political Science (Fiscal Policy (economy))
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This paper looks at the Glass-Steagall Act, passed in 1933 which placed strict limits on banks to prevent a repeat of the Great Depression and how, in recent years, it has come under attack, with banks, politicians, and even regulators calling on Congress to reform federal regulation of financial institutions. It evaluates how the rules laid down in the act no longer apply in a searing economy based on technology and how the rules still applied to banks which watched their profitability suffer as they were denied entry into other sectors of the economy. It examines the efforts and results of the lobbying for the reform bill which was eventually signed on November 12, 1999.
From the Paper:"Only consumer advocacy groups arrayed against bank reform, at least for the long haul. Ralph Nader, head of Public Citizen summarized his group's opposition in testimony before Congress on February 11, 1999. He argued that the repeal of Glass-Steagall would lead to the formation of corporate combinations "which will dominate the delivery of financial products and fuel the already alarming trend toward mega mergers and the concentration of economic power" (Nader, 1999). Edmund Mierzwinski from the Public Interest Research Group (PIRG) echoed Nader's sentiments, arguing that the "one-stop" shopping pushed by banks would lead to higher fees, less privacy, and less choice for consumers (Mierzwinski, 1999)."
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Bank Reform (2003, April 29) Retrieved June 27, 2019, from https://www.academon.com/essay/bank-reform-26302/
"Bank Reform" 29 April 2003. Web. 27 June. 2019. <https://www.academon.com/essay/bank-reform-26302/>