Page "Glass–Steagall Act" Paragraph 172

With banking commentators such as Mayer and Minsky no longer opposing Glass-Steagall repeal, consumer and community development advocates became the most prominent critics of repeal and of financial “ modernization ” in general.

Helen Garten argued that bank regulation became dominated by “ consumer ” issues, which produced “ a largely unregulated, sophisticated wholesale market and a highly regulated, retail consumer market .” In the 1980s Representative Fernand St. Germain ( D-RI ), as chairman of the House Banking Committee, sought to tie any Glass-Steagall reform to requirements for free or reduced cost banking services for the elderly and poor.

Democratic Representatives and Senators made similar appeals in the 1990s.

During Congressional hearings to consider the various Leach bills to repeal Sections 20 and 32, consumer and community development advocates warned against the concentration of “ economic power ” that would result from permitting “ financial conglomerates ” and argued that any repeal of Sections 20 and 32 should mandate greater consumer protections, particularly free or low cost consumer services, and greater community reinvestment requirements.