Report From the White House: Would Glass-Steagall Have Saved Us?http://www.fool.com/investing/general/2009/10/19/report-from-the-white-house-would-glass-steagall-h.aspx Dayana Yochim
October 19, 2009
We're not shy about advocating for shareholder rights and making sure our members are heard on important matters that affect our portfolios. That's why the White House asked for feedback from the Motley Fool community and agreed to answer your questions. Here is the third installment of our interview with Austan Goolsbee, chief economist for the President's Economic Recovery Advisory Board.
It's no surprise that investors in Fooldom are outraged about the risky practices and untenable leverage taken on by "too big to fail" financial institutions. That these companies were, in fact, doing business within the letter of the law is fuel for the White House's ambitious plan to overhaul financial regulation.
Many of you who made posts to our article calling for questions about the White House's financial regulation reform plan harkened back to the good old days, when Glass-Steagall was the law of the banking land.
Great comments, Fools. And so, on your behalf, David Gardner and I asked Austan Goolsbee, chief economist for the President's Economic Recovery Advisory Board, if new laws -- a la Glass-Steagall -- are in the cards.
Scroll down just a few inches to watch the video. Or read on for a briefing on the history of banking regulation and how the rules of the road have been changed over time.