John’s mentioned this a few times.
Recently, JPMorgan Chase announced that it had lost more than $2 billion on risky trades. The news raised more questions about the need for tighter banking regulations; some insisted that more oversight is needed in order prevent the risk inherent in depository institutions proprietary trading. Others, though, believe that introducing new regulations won’t really solve the problem. Instead, there are suggestions that reinstating the Glass-Steagall act would be the most effective way to prevent these types of losses in the future.
Glass-Steagall prohibited commercial banks from participating in investing.
Oddly enough, in looking for a picture, I found this from two years ago. I wonder where we’d be if they had done it back then? Or five years ago? Or never killed it?