background preloader

Glass–Steagall Act

Glass–Steagall Act
The term Glass–Steagall Act usually refers to four provisions of the U.S. Banking Act of 1933 that limited commercial bank securities activities and affiliations within commercial banks and securities firms.[1] Congressional efforts to “repeal the Glass–Steagall Act” referred to those four provisions (and then usually to only the two provisions that restricted affiliations between commercial banks and securities firms).[2] Those efforts culminated in the 1999 Gramm–Leach–Bliley Act (GLBA), which repealed the two provisions restricting affiliations between banks and securities firms.[3] [edit] The sponsors of both the Banking Act of 1933 and the Glass-Steagall Act of 1932 were southern Democrats: Senator Carter Glass of Virginia (who in 1932 had been in the House, Secretary of the Treasury, or in the Senate, for the preceding 30 years), and Representative Henry B. Steagall of Alabama (who had been in the House for the preceding 17 years). Legislative history of the Glass–Steagall Act[edit]

Related:  EconomyGreat Depression

In Climbing Income Ladder, Location Matters ATLANTA – Stacey Calvin spends almost as much time commuting to her job — on a bus, two trains and another bus — as she does working part-time at a day care center. She knows exactly where to board the train and which stairwells to use at the stations so that she has the best chance of getting to work on time in the morning and making it home to greet her three children after school. “It’s a science you just have to perfect over time,” said Ms. Calvin, 37. Richest 1% may own half of global wealth by 2016 The combined wealth of the world's richest 1 percent could overtake that of the other 99 percent by 2016 , according to a report by Oxfam published Monday, as billionaires, politicians and business leaders gather in Davos for the annual World Economic Forum. In a study called "Wealth: Having it all and wanting more." the international charity warned that a sharp rise in inequality was holding back the fight against global poverty at a time when 1 in 9 people do not have enough to eat and more than a billion people live on less than $1.25 a day. © Provided by CNBC Of the remaining 52 percent of global wealth in 2014 , about 46 percent was owned by the rest of the richest fifth of the world's population. The other 80 percent of the world share d around 5.5 percent, according to Oxfam.

Greenmail Greenmail or greenmailing is the practice of purchasing enough shares in a firm to threaten a takeover, thereby forcing the target firm to buy those shares back at a premium in order to suspend the takeover. Tactic[edit] Corporate raids aim to generate large amounts of money by hostile takeovers of large, often undervalued or inefficient (i.e. non-profit-maximizing) companies, by either asset stripping and/or replacing management and employees. However, once having secured a large share of a target company, instead of completing the hostile takeover, the greenmailer offers to end the threat to the victim company by selling his share back to it, but at a substantial premium to the fair market stock price. From the viewpoint of the target, the ransom payment may be referred to as a goodbye kiss.

The Benefits of Economic Expansions Are Increasingly Going to the Richest Americans Economic expansions are supposed to be the good times, the periods in which incomes and living standards improve. And that’s still true, at least for some of us. But who benefits from rising incomes in an expansion has changed drastically over the last 60 years. Drought may soon yield mysterious WWII-era bomber beneath Lake Mead Water levels are at their lowest at Nevada's Lake Mead leading the National Park Sevice to allow permits for recreational diving at the site of a downed B-29 bomber. (National Park Service) The drought that has parched much of the southwest may soon yield a mystery that has rested at the bottom of Nevada's Lake Mead for nearly 70 years, a B-29 bomber that went down carrying a top-secret missile defense system that may have actually caused the crash. The B-29 bomber, also known as the "Superfortress" and the same model as the storied Enola Gay and Bockscar, the planes that dropped atomic bombs on Japan, crashed in 1948 as it flew over the giant lake testing a sun-powered missile guidance system.

Pac-Man defense The Pac-Man defense is a defensive option to stave off a hostile takeover in which a company that is threatened with a hostile takeover "turns the tables" by attempting to acquire its would-be buyer. In 1984, Securities Exchange Commission commissioners said that the Pac-Man defense was cause for “serious concern,” but balked at endorsing any federal prohibition against the tactic. The commissioners acknowledged a Pac-Man defense can benefit shareholders under certain circumstances, but emphasized that management, in resorting to this tactic, must bear the burden of proving it isn’t acting solely out of its desire to stay in office. One concern is that the money spent to gain control of the intruding company, which includes payment for the services of lawyers and other professionals needed to mount that defense, represents substantial funds that could have otherwise been used to improve the company’s business or increase its profits.[1]

Poor kids who do everything right don’t do better than rich kids who do everything wrong Source: Data from Richard Reeves and Isabel Sawhill Not a day seems to go by where we're not reminded that inequality is growing in America. But it's not just outcomes that matter; it's opportunity. Last month, we looked at startling new research that showed that poor kids who do what they need to do -- go to college -- make just about as much money later in life as wealthy kids who don't even graduate high school. America is the land of opportunity, just for some more than others. That's because, in large part, inequality starts in the crib.

Congress could soon allow pension plans to cut benefits for current retirees Congress could soon allow the benefits of current retirees to be cut as part of an agreement to address the fiscal distress confronting some of the nation’s 1,400 multi-employer pension plans. Several unions and pension advocates opposing the move, which would be unprecedented, say that permitting financially strapped plans to cut retiree benefits would violate the central promise of traditional pensions: that they would provide a defined benefit for life. “This proposal would devastate retirees and their surviving spouses,” said Karen Friedman, executive vice president of the Pension Rights Center, a nonprofit group.

Shareholder rights plan A shareholder rights plan, colloquially known as a "poison pill", is a type of defensive tactic used by a corporation's board of directors against a takeover. In the field of mergers and acquisitions, shareholder rights plans were devised in the early 1980s as a way for directors to prevent takeover bidders from negotiating a price for sale of shares directly with shareholders, and instead forcing the bidder to negotiate with the board. Shareholder rights plans are unlawful without shareholder approval in many jurisdictions such as the United Kingdom, frowned upon in others such as throughout the European Union, and lawful if used "proportionately" in others, including Delaware in the United States. Shareholder rights plans, or poison pills, are controversial because they hinder an active market for corporate control. History[edit] Overview[edit]

17 Things We Learned About Income Inequality in 2014 The Atlantic's Business editors break down the year's most divisive economic conversation. Lucas Jackson/Reuters Earnings growth for the richest Americans has been outpacing the income growth of the lower and middle classes since the 1970s, according to the Center on Budget and Policy Priorities's analysis of data from the Congressional Budget Office.