Archive for the ‘phil gramm’ Category

u.s. financial meltdown clinton greenspan

Sunday, September 21st, 2008

at the moment loads of people are fingering alan greenspan. but a lot of the press has failed to point the finger at the 1999 repeal of the glass-steagal act. according to pbs “in 1933, senator carter glass (D-Va.) and congressman he enry steagall (D-Ala.) introduce the historic legislation that bears their name, seeking to limit the conflicts of interest created when commercial banks are permitted to underwrite stocks or bonds.” it stood in good stead (albeit with a bit of tinkering) for 75 years until congress and bill clinton repealed it in 1999 following hundreds of millions of dollars worth of lobbying efforts by banks. under the gise of making the u.s. banking industry more competitive, the financial services modernization act passed by an overwhelmingly majority in congress and was signed by bill clinton.

joe biden voted yes and john mccain did not vote. barack obama was somewhere in illinois. house speaker nancy pelosi voted to repeal glass-steagal as well.

but the sponsor of the bill, phil gramm was advising john mccain at some point during his campaign.