What the media and Democrats never tell you: {How Wall Street Bankers bought a President and destroyed the American Economy in ten short years and walked away with TRILLIONS OF DOLLARS!} Over the last 50 years has fallen into the hands of foreign investors. With the US Investment Banks now heavily financed by BILLIONS OF DOLLAR loans -- fueled by oil profits, Wall Street has “morphed” from just being ‘heavily influenced’ by foreign entities to answering to “new owners.” The polls now predict that these ‘New Proprietors’ will, in less than a month, soon own another President – Barack Hussein Obama. While ‘virtually’ all readers of this post will quickly dismiss this information as ‘wild’ imagination and most will not read it at all, the historical facts behind this story are “Rock Solid” and can not be refuted!
Rubin calls for modernization through reform of Glass-Steagall Act.
Publication: Journal of Accountancy
Date: Monday, May 1 1995 {Destruction of America and the American economy began when Wall Street banks bought themselves a President – weeks after Glass Steagall was overturned by the Clinton Administration, the Mastermind Robert E. Rubin
Robert E. Rubin, secretary of the Treasury, recommended that Congress pass legislation to reform or repeal the Glass-Steagall Act of 1933 to modernize the country's financial system. In testimony before the House Committee on Banking and Financial Services, Rubin said Clinton administration proposals would permit affiliations between banks and other financial services companies, such as securities firms and insurance companies. However, the secretary emphasized that the Clinton administration did not endorse affiliations between banks and industrial companies.
The Glass-Steagall Act was enacted during the Great Depression to restrict the securities activities and affiliations of banks and has long been seen as having separated commercial banking. The act was intended to protect banks, prevent conflicts of interest and other abuses and safeguard the financial system. Rubin said supporters of the act today say Glass-Steagall is necessary to protect the federal deposit insurance system.
"However," said Rubin, "the banking industry is fundamentally different from what it was two decades ago, let alone in 1933." He said the industry has been transformed into a global business of facilitating capital formation through diverse new products, services and markets. "U.S. banks generally engage in a broader range of securities activities abroad than is permitted domestically," said the Treasury secretary. "Even domestically, the separation of investment banking and commercial banking envisioned by Glass-Steagall has eroded significantly."
Robert E. Rubin, secretary of the Treasury, recommended that Congress pass legislation to reform or repeal the Glass-Steagall Act of 1933 to modernize the country's financial system. In testimony before the House Committee on Banking and Financial Services, Rubin said Clinton administration proposals would permit affiliations between banks and other financial services companies, such as securities firms and insurance companies. However, the secretary emphasized that the Clinton administration did not endorse affiliations between banks and industrial companies.
The Glass-Steagall Act was enacted during the Great Depression to restrict the securities activities and affiliations of banks and has long been seen as having separated commercial banking. The act was intended to protect banks, prevent conflicts of interest and other abuses and safeguard the financial system. Rubin said supporters of the act today say Glass-Steagall is necessary to protect the federal deposit insurance system.
"However," said Rubin, "the banking industry is fundamentally different from what it was two decades ago, let alone in 1933." He said the industry has been transformed into a global business of facilitating capital formation through diverse new products, services and markets. "U.S. banks generally engage in a broader range of securities activities abroad than is permitted domestically," said the Treasury secretary. "Even domestically, the separation of investment banking and commercial banking envisioned by Glass-Steagall has eroded significantly."
Rubin said Glass-Steagall imposed unnecessary costs and made providing financial services less efficient and more costly. He said the act can "conceivably impede safety and soundness by limiting revenue diversification." Rubin also said many legitimate concerns were addressed adequately outside the act, including the numerous steps taken to safeguard against risky and abusive bank transactions and to protect the deposit insurance fund.
Among Rubin's recommendations for financial modernization were
* Permitting a depository institution insured by the Federal Deposit Insurance Corporation to affiliate with a securities firm, insurance company or other financial company.
* Repealing section 20 of the Glass-Steagall Act. Section 20 prohibits a bank that is a federal reserve system member from affiliating with a company principally engaged in underwriting or dealing in securities that a national bank cannot underwrite or deal in directly.
* Allowing insured depository institutions to affiliate only with firms that were well capitalized and well managed and had internal controls that adequately managed financial and operational risk, and only if the institutions' safety and soundness were unimpaired.
* Maintaining the Federal Reserve Board's authority to impose consolidated capital standards as a safeguard on bank holding companies whose subsidiary insured depository institutions constitute their principal business.
Rubin said bills introduced in the House and the Senate to modernize the financial services system were highly constructive, although somewhat different from the Clinton administration's recommendations, and that a bipartisan effort could yield significant results this year
Rubin with helping create the conditions for the Financial crisis of 2007–2008, as a result of the policies he pursued as Treasury Secretary. Together with then-Federal Reserve chairman Alan Greenspan, Rubin strongly opposed the regulation of derivatives, when such regulation was proposed by then-head of the Commodity Futures Trading Commission (CFTC), Brooksley Born. Over-exposure to credit derivatives of mortgage-backed securities - or credit default swaps (CDS) was a key reason for the failure of US financial insitutions Bear Stearns, Lehman Brothers, Merrill Lynch, American International Group, and Washington Mutual in 2008.
In 1999, affirming his career-long interest in markets, Mr. Rubin joined Citigroup. Of note, the supermerger between Travelers Group and Citicorp was facilitated by the repeal of the Glass Steagall Act.
{Written in 1995} |
