‘Too big to fail’

by Armstrong Williams - 05/04/10 7:58 PM ET

However, with the increasing globalization of finance, American commercial and
investment banks were increasingly competing against well-capitalized foreign
banks that were not subject to the restrictions of Glass-Steagall. In 1999, a
Republican Congress and a Democratic president (Clinton) repealed the portion
of the act that separated commercial and investment banking. Commercial banks
began acquiring investment banks and engaging in more risky investment activity
formerly confined to investment banks.

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Visit www.armstrongwilliams.com.

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