Reich Admits Glass-Steagall Repeal under Bill Clinton Helped Cause Banking Crisis

RUSH TRANSCRIPT:

REICH: "No, we used to have something called the Glass–Steagall Act. That separated investment banking from commercial banking. Bill Clinton in 1999 with the advice of some of his advisers, not me certainly, I wasn’t there then, joined Republicans and got rid of the Glass–Steagall Act which allowed banks like Citibank to become CitiGroup, these gigantic commercial banks that allowed them in turn to start gambling with money. That got us into trouble. The Glass–Steagall Act did a good job for 50 years after the great depression. Should have kept it. And I don’t understand why Hillary Clinton is so much against resurrecting the glass steel act. Bernie Sanders has said from the beginning he wants it resurrected. I think that’s an important first step."