Not meant to be political, but I recall blame being placed on Clinton for this repeal. Just wanted to clear the air as to the root of current problems. Please respect patron's wishes and keep politically angled responses to appropriate threads
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McCain and The GOP Broke The Financial System
by mrJJ
Tue Sep 16, 2008 at 05:04:34 AM PDT
The GOP Deregulated the Financial System. Now It's Time To Pay The Piper.
Gramm-Leach-Bliley Financial Services Modernization Act.
53 Republican Senators plus one Democrat - AYE
44 Democrats no Republicans - NAY
* mrJJ's diary :: ::
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Gramm-Leach-Bliley Financial Services Modernization Act.
53 Republican Senators plus one Democrat - AYE
44 Democrats no Republicans - NAY
The Gramm-Leach-Bliley Act, also known as the Gramm-Leach-Bliley Financial Services Modernization Act, Pub. L. No. 106-102, 113 Stat. 1338 (November 12, 1999), is an Act of the United States Congress which repealed the Glass-Steagall Act, opening up competition among banks, securities companies and insurance companies. The Glass-Steagall Act prohibited a bank from offering investment, commercial banking, and insurance services.
The Gramm-Leach-Bliley Act (GLBA) allowed commercial and investment banks to consolidate. For example, Citibank merged with Travelers Group, an insurance company, and in 1998 formed the conglomerate Citigroup, a corporation combining banking and insurance underwriting services. Other major mergers in the financial sector had already taken place such as the Smith-Barney, Shearson, Primerica and Travelers Insurance Corporation combination in the mid-1990s. This combination, announced in 1993 and finalized in 1994, would have violated the Glass-Steagall Act and the Bank Holding Acts by combining insurance and securities companies, if not for a temporary waiver process <1>. The law was passed to legalize these mergers on a permanent basis. Historically, the combined industry has been known as the financial services industry.
Economist Robert Kuttner has criticized the repeal of the Glass-Steagall Act as contributing to the 2007 subprime mortgage financial crisis.<6> Economists Robert Ekelund and Mark Thornton have made similar criticisms, arguing that while "in a world regulated by a gold standard, 100% reserve banking, and no FDIC deposit insurance" the Financial Services Modernization Act would have made "perfect sense" as a legitimate act of deregulation, under the present fiat monetary system it "amounts to corporate welfare for financial institutions and a moral hazard that will make taxpayers pay dearly".
"John McCain voted FOR the bank laws that led to the current credit crisis. John Mccain's economic advisor WROTE the law. 53 Republicans voted YES to the law. When you're in danger of losing your house, can you take a chance on more of the same from those who wrecked out economy?"
Look like The GOP wanted to Privatize Social Security; To Shore up Wall Street cash deficit.
How Did Your Senator Vote on the (GLBA)?
senate.gov. |
