It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
The original Community Reinvestment Act was passed by Congress and signed into law in 1977 by Jimmy Carter. Its purpose, in a nutshell, was to require banks to provide credit to “under-served populations,” i.e., those with poor credit.
In 1995, Bill Clinton’s administration made various changes to the CRA, increasing “access to mortgage credit for inner city and distressed rural communities,” i.e., it provided for the securitization, i.e. public underwriting, of what everyone now calls “sub-prime mortgages.”
Bottom line? It forced banks to issue $1 trillion in sub-prime mortgages.
In 1999 Congress passed the Gramm-Leach-Bliley Financial Services Modernization Act which repealed part of the Glass-Steagall Act of 1933, opening up competition among banks, securities companies and insurance companies.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.
In 2000, Congress passed a law barring states from regulating credit default swaps under their gambling and “bucket shop” laws. This set the stage for the market in “financial derivatives” that are a big part of what is causing the economic meltdown today.
Then there was H.R. 5660, the Commodity Futures Modernization Act of 2000. That bill was folded into the Consolidated Appropriations Act, 2001, a massive spending bill, passed in haste at the end of the 106th Congress.