To: JD who wrote (13002 ) 12/30/1999 3:26:00 PM From: long-gone Respond to of 116815
(more opinion) Robert Rubin's pro-corporate finance position oddly doesn't hurt his image. By Russell Mokhiber and Robert Weissman FEW TOP GOVERNMENT officials, elected or appointed, have managed to emerge from a half dozen years in the Washington, D.C., spotlight as unscathed as former treasury secretary Robert Rubin has. And Rubin did better than escape without scratches -- he ended his term of office with his image enhanced. Wall Street and the financial press practically beatified him for his role in overseeing the global economy through difficult times and working in tandem with Federal Reserve chair Alan Greenspan to keep the U.S. economy working smoothly. Rubin helped precipitate the Asian financial crisis, which has inflicted untold suffering on tens of millions, orchestrated the bailout of foreign bankers and investors in connection with the Mexican and Asian financial disasters, and crafted or helped implement domestic policies that ensured that the overwhelming portion of benefits from economic growth would go to the rich but none of this managed to sully the reputation of Secretary Rubin. Now Teflon Bob appears on the verge of demonstrating that his immunity to criticism makes Ronald Reagan look like he was coated with bubble gum. When he stepped down from his treasury post this past summer, Rubin left unfinished a legislative effort to rewrite the nation's banking laws. Misnamed "financial modernization" legislation was really a deregulatory initiative reminiscent of the S&L deregulation that led to a corporate crime spree, the collapse of the industry, and the subsequent taxpayer bailout of epic proportions. The centerpiece of the deregulatory bill, which different fragments of the financial industry have pushed for a decade and a half, is the repeal of the revered Glass-Steagall Act, which bars the common ownership of banks and insurance companies and securities firms. Although powerful interests have long backed the legislation, it has repeatedly failed to make it through Congress because of a maze of intra-industry disputes, turf fights between different parts of the federal regulatory structure, and the concerted efforts of consumer and(cont)sfbg.com