by ringingbells
20th Century
In 1929, the reasons the stock market crashed parrelelled the reasons during the 2008 financial crisis: underwriting. In 1929, it caused Black Tuesday and directly led to the Great Depression, and arguably WWII.
June 16, 1933, Glass-Steagall was enacted to prevent it from ever happening again.
June 6, 1934, the SEC was created in the United States.
1999 – The Repeal of Glass-Steagall was hidden in consumer protection legislation
21st Century
2008 – Underwriting Causes Financial Crisis. Too-Big-To-Fail is now a tactic used to ransom everyone’s money if a bad bet was placed, or a faulty system was upheld.
2021 – PFOF Brokers PCO target stocks, tanking their value leaving retail investors as the bag holders. Cascading Bank failure a risk.
- Gary Gensler, Chairman of the SEC, says that they had to protect the clearinghouse.
- The Former Chairman of the SEC, Michael Piwowar discusses cascading bank failure
- Then, CNBC edits the live feed of US Congressional Hearing, specifically taking out this part
Proof of CNBC Live Edit:
- Here is a link to the CNBC coverage – 2 seconds – before the moment the video has a jump cut.
- Here is a link to the source Government live stream with the missing 10 minutes and 18 seconds starting where the CNBC video cuts off. The edit was made between timestamps 2:37:34 and 2:47:52.
- [Side-by-side videos playing simultaneously for comparison](link not allowed)
- Here is a direct youtube clip with only the missing CNBC footage.
- Here is the context to what is being talked about in the beginning.
- Debatably, Too-Big-To-Fail was used here and the market was illegally manipulated to save a broken system. Instead of a bailout, they just changed the rules. The bailout took the form of the government looking the other way. Setting aside the larger entities using Too-Big-To-Fail, an employee of one of the brokers was even caught using the literal phrase.
- Historically unprecedented, the Broker freeze on buying target stocks that intentionally tanked their value had no regard to the consequences, not only to its “app users,” but also to how such actions would affect the market in general. The actions were unimpeded by the SEC (even backed by the SEC), backed by the NSCC, and then ruled legal by a court of law – covered by TOS. On a side note, this sets an insane precedent. A broker admitted default. Moreover, the broker in question even quoted that the market could have crashed if these things didn’t happen. It shows a broken system that was bailed out by illegal actions that the government didn’t prosecute.
Present
The current Chairman of the SEC is Gary Gensler.
- Gary Gensler led the charge in 1999 to repeal Glass-Steagall.
- Here is his speech championing the repeal prior to its passing in 1999
- Gary is thanked 3 times in the 1999 repeal: 1, 2, 3
The current US president emphasized the importance of Glass-Steagall by sharing that the biggest regret of his life was casting his vote in 1999 to repeal it. link.