19 November 2009
(Updated 14 December 2009)
Humanitarian Resource Institute
Phone:
(203) 668-0282
Url: www.humanitarian.net
Global Arts Integration Into Education
Initiative
Medical, Legal, Veterinary & Performing Arts
Url: www.unarts.org
Twitter: unarts
Please note: In 1999, Stephen M. Apatow, with the support of the
directorate level at the Federal Emergency Management Agency (FEMA), HRI
facilitated the formation of the International Disaster Information Network
(IDIN). IDIN interlinked leaders in 192 United Nations member countries
for risk management and contingency planning for the Year 2000 conversion.
This discussion is related to the mechanism that facilitated investment bank
access to central bank liquidity that was directed toward remediation efforts
in 192 UN member countries.
Dear Friends
Today's, grass roots initiative targets the root cause of the global
financial crisis and market collapse, the repeal of the the Glass-Steagall Act in 1999.
In the context of recovery, the focus is reversing 10 years of systemic
damage to the global economy.
What is Glass-Steagall?
Banking Act of 1933 (P.L.
73-66, 48 STAT. 162): Also known as the Glass-Steagall Act. Established the
FDIC as a temporary agency. Separated commercial banking from investment
banking, establishing them as separate lines of commerce.
-- FDIC:
Important Banking Legislation
The Glass-Steagall
Act, also known as the Banking Act of 1933 (48 Stat. 162), was passed by Congress
in 1933 and prohibits commercial banks from engaging in the investment business.
It was
enacted as an emergency response to the failure of nearly 5,000 banks during
the Great Depression. The act was originally part of President Franklin D.
Roosevelt’s New Deal program and became a permanent measure in 1945. It gave
tighter regulation of national banks to the Federal Reserve System; prohibited
bank sales of securities; and created the Federal Deposit Insurance Corporation
(FDIC), which insures bank deposits with a pool of money appropriated from
banks.
Beginning
in the 1900s, commercial banks established security affiliates that floated
bond issues and underwrote corporate stock issues. (In underwriting, a bank
guarantees to furnish a definite sum of money by a definite date to a business
or government entity in return for an issue of bonds or stock.) The expansion
of commercial banks into securities underwriting was substantial until the
1929 stock market crash and the subsequent Depression. In 1930, the Bank of
the United States failed, reportedly because of activities of its security
affiliates that created artificial conditions in the market. In 1933, all
of the banks throughout the country were closed for a four-day period, and
4,000 banks closed permanently.
Read More...
As a result
of the bank closings and the already devastated economy, public confidence
in the U.S. financial structure was low. In order to restore the banking
public's confidence that banks would follow reasonable banking practices,
Congress created the Glass-Steagall Act. The act forced a separation of commercial
and investment banks by preventing commercial banks from underwriting securities,
with the exception of U.S. Treasury and federal agency securities, and municipal
and state general-obligation securities. Likewise, investment banks may not
engage in the business of receiving deposits. - Glass-Steagall Act (1933): New York Times.
Related Study Materials:
Following
the market crash in 2008, critical emergency actions should have been implemented,
namely (1) restoration of Glass-Steagall protections and (2) FDIC level oversight
(including legitimate capitol requirements) of all bank and non bank financial
institutions. Ignoring these emergency actions has resulted in a return
to the same activities that caused the market collapse, empowered by zero
interest rate emergency central bank stabilization funds.
In a global effort to restore these legal protections (Global Glass-Steagall -
Separation of commercial banking from investment
banking), we are asking you to contact your
elected officials and leaders with a request for immediate action:
We have a $600 Trillion unregulated shadow banking challenge
on our hands, systemic hyperinflation and a catastrophic international humanitarian
emergency, that now seriously impacts half of the earth's population (3.5
Billion) that lives in severe poverty.
Thank you for your support of the Humanitarian Resource
Institute Risk Management Model, in every UN member country:
1. Identification of focus issue, 2. Expert collaboration,
3. Peer reviewed data compilation, 4. Direct communications to
the decision making level. This provides
a real time, pathway for consensus building and response from the
grassroots community to the international policy development level.
Each of us has a critical role to
play, especially with regards to restoration of integrity to the global financial
system... This includes reversing the systemic damage of hyperinflation
attributed to repeal of the Glass-Steagall protections.
Stephen Michael Apatow
Founder, Director of Research and Development
Humanitarian Resource Institute
Phone: (203) 668-0282
Url: www.humanitarian.net
Email: s.m.apatow@humanitarian.net
Global Arts Integration Into Education
Initiative
Medical, Legal, Veterinary & Performing Arts
Url: www.unarts.org
Twitter: unarts
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