The
efforts of Senator Elizabeth Warren (D-MA) to bring back the Glass-Steagall Act
gained some adherents in the U.K. Parliament. During recent debate on the U.K.
legislation on ring-fencing retail from investment banks, legislators had some
nice things to say about Glass-Steagall.
Lord
Lawson, a key member of the joint Banking Standards Commission, said that the
Glass-Steagall Act worked in the United States
for many, many years and it is no accident that serious problems emerged after it
was repealed. Indeed, the Glass-Steagall Act would have worked for a great deal
longer, he said, had not successive American Administrations been lobbied by
the banks to introduce loopholes in one place and another. Similarly, Lord Barnett said that Glass-Steagall, which he called the separation regime
in the United States ,
did not fail but succeeded for more than 60 years. It failed when the lobbyists
in the banks eventually won, he noted. However, he continued, ``if we managed
to introduce a UK
form of Glass-Steagall, strengthened to prevent lobbyists succeeding, we will
have achieved something that has never been achieved before.’’