This is Coudert Bros. take, not exactly neutral*, but it will launch your research:
The Gramm-Leach-Bliley (Financial Services Modernization) Act:
Merchant Banking Activities
June 5, 2000
coudert.com
*for instance, the belief that forming a separate corporation protects fed insured funds is false. Technically these corps are as "separate" as the SPE's at Enron, and as a practical matter, if the sub needs the cash, the bank will feed itself rather than making a loan to a legitimate customer.
In effect, ability to repay, no longer becomes a test of lending. Money is diverted from worthy entraprenuers to the banks left pocket. There is no competition for the federally insured funds.
This is why Glass Stegall was enacted after the last depression. Credit dries up, money is diverted, the velocity of the money supply comes to a screeching halt.
The stock market is intended to be competition for the banks which prevents this. But when the Banks can neutralize the stock market, the first thing the banks do is grab all the money they can, and try to put anyone else in jail.
It has started. About two years ago. Right after the enactment of this bill. |
