"Before we close this dark chapter of banking history, it is worth looking back at Ferdinand Pecora. In 1933, this Italian immigrant was put in charge of the Levin commission of his day – an inquiry into the causes of the 1929 crash.
"Its findings of banks’ abusive practices and conflicts of interest led to the creation of the Securities and Exchange Commission and the passage of the Glass-Steagall Act separating commercial and investment banking. The half a century that followed was among the most stable in US banking history.
"Levin, Dodd, Frank and Vickers should have striven for the same level of ambition, if not the same solutions, as Pecora, Glass and Steagall.
"A crisis is a terrible thing to waste."
—Francesco Guerrera, Financial Times’s Finance Editor, 4/18/2011
Not to worry. The crisis has only begun. Thus, common knowledge that, Goldman Sachs deceived customers probably will prove a more abiding memory than any Justice Department inclined to respond with a weak wink and a smile, today, tomorrow or any other day forward. In fact, given fast approaching hyperinflationary breakdown the firm might sooner wish Washington were not so bloated with jellyfish, that a decent burial rather than a violent one might more likely be accommodated.
Will those many representatives ensuring domestic tranquility be so brave to seize this moment, that all decency as was imposed upon the American nation's opening salvo might prove alive and well-poised for a good shine this moment in time finding an eternal tormentor — a Declaration's bulls eye — insolvent? Is the body politic keen on preventing yet another torching of Washington with equal due diligence as likewise guides German abhorrence toward its Weimar experience?
With these questions in mind did I write my congresswoman...
Dear Rep. Buerkle:
For you to become a cosponsor of H.R. 1489 — Return to Prudent Banking Act of 2011 — about how many constituent signatures on a petition imploring this might it take to make your decision a no brainer?
Here's what you should know about why this bill is believed the most important piece of legislation currently before Congress:
http://stock-index-options-alert.blogspot.com/2011/04/stock-index-options-alert-apr-19-2011.html
The average investor well-served, one also imagines that, some thousand public servants here in NY25 could be rallied to clearly understanding it is Glass-Steagall or Die: their service, more likely, yet even the nation.
Respectfully,
TC
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