Banking

McCain Wants to Reinstate Glass-Steagall

Is John McCain recovering his maverick edge? The Republican senator plans to team up with Senator Marcia Cantwell (D-WA) on Wednesday to introduce legislation that would reinstate the Glass-Steagall Banking Act of 1933. That New Deal-era law prevented commercial banks from engaging in risky investment banking. Many say that its repeal in 1999 paved the way for the financial crisis of 2008 by permitting banks to merge with insurance and investment companies. Its repeal allowed Citicorp to merge with Travelers to form Citigroup.