Campaign for Glass-Steagall Picks up Steam in the United States

Immediately following the Feb. 16 press conference by Donald Trump, Lyndon LaRouche commented that if his presidency is to be successful, he must move quickly to re-instate Glass-Steagall bank separation and to rein in Wall Street, as he pledged to do during the election campaign. In fact, over the past weeks, as the threat of a new financial crash grows, there has been a surge of support in the United States for re-establishing a strict separation between deposit and investment banks, as mandated under the Glass-Steagall Act.

* The LaRouche Political Action Committee is circulating a petition, initially drafted by a group called “Our Revolution in Northwest Ohio”, which calls on President Trump to “restate his support for a Glass-Steagall Act during the State of the Union address” on Feb. 28.

* The legislation introduced by Democratic Representative from Ohio Marcy Kaptur on Feb. 1, now has 31 co-sponsors, all Democrats except for Republican Walter Jones. They are ready to work with Donald Trump on this piece of legislation, in spite of disagreements on other issues.

* Resolutions calling on the Federal House and Senate to re-enact Glass-Steagall have been introduced or re-introduced into 11 state legislatures just since the beginning of the year. These initiatives are the direct result of organizing efforts by the LaRouche PAC, and in six of the states, the resolutions not only call for bank separation, but for all four of LaRouche’s “Four Laws”.

* The AFL-CIO trade-union federation, through various spokesmen, has urged President Trump to make good on his electoral promise to separate the banks and enact Glass-Steagall. The union’s President Richard Trumka has expressed his disappointment with Trump’s economic policy “so far”, but has said he is willing to work with him on what is good for the economy.

Besides the AFL-CIO, since the 2008 financial blowout, strong support for re-enacting bank separation has also come from the National Farmers Union and the United Steelworkers Union.

The confirmation of former Goldman-Sachs banker Stephen Mnuchin (known as the “foreclosure king” for the number of families his bank kicked out of their homes) as Treasury Secretary and the appointment of a number of other financial insiders as advisers do not bode well for a crackdown on Wall Street. But ultimately, if the United States government does decide to cooperate with the Chinese, the Russians, the Japanese and many others on developing the world economy on a win-win basis, the needed reforms will have to be implemented.