While the majority of problems that occurred centered mostly on the pure-play investment banks like Lehman Brothers, the huge banks born out of the revocation of Glass-Steagall, especially Citigroup, and the insurance companies that were allowed to deal in securities, like the American International Group, would not have run into trouble had the law still been in place.
“Commercial banks played a crucial role as buyers and sellers of mortgage-backed securities, credit-default swaps and other explosive financial derivatives,” Demos, a nonpartisan public policy and research organization, wrote in a report discussing the problems it said were caused by the repeal of Glass-Steagall.
“Without the watering down and ultimate repeal of Glass-Steagall, the banks would have been barred from most of these activities,” Demos said. “The market and appetite for derivatives would then have been far smaller, and Washington might not have felt a need to rescue the institutional victims.”
But 10 years ago, the revocation of Glass-Steagall drew few critics. In the House, 155 Democrats and 207 Republicans voted for the measure, while 51 Democrats, 5 Republicans and 1 independent opposed it. Fifteen members did not vote.
One of the leading voices of dissent was Senator Byron L. Dorgan, Democrat of North Dakota. He warned that reversing Glass-Steagall and implementing the Republican-backed Gramm-Leach-Bliley Act was a mistake whose repercussions would be felt in the future.
Yeah, you’re so right!
But 99.9% of the people who know will vote the same dirtbags back into office come next election.
Americans have got to come together as a whole. If we do not, the U.S. will fall. If we don’t unite and put our indifferences to the side, the day will come where we wished we had.
reply to post by Propulsion
I kick myself in the butt every time I find myself unable to resist the reply icon.
I know it is a futile effort, but deep down I inside, I hope that maybe just one lurker will see the light and maybe, just maybe.......
The problem is the same problem it's always been--corruption. And every economic model and form of government suffers from it.
My rep voted "no" on H.R. 922. I sent her an email with my thanks. These people work for us. You have to let them know your position.
I may sound incredidably stupid right now but, what exactly happened? I don't know what this means at all....
As I said in an earlier post www.abovetopsecret.com... this will never happen. It won't pass the Senate, Obama wouldn't sign it if it did, and I'd bet not one person participating in the D.C. comics, I mean political game, thinks it will be signed into law.
Unfortunately it re-authorizes the Fed to bailout banks that gamble on swaps and derivatives...
H.R. 992 REPEALS most of Section 716 of the Dodd Frank Act, allowing covered depository institutions to trade swaps. The legislation RETAINS subsection (i), of Section 716, which prohibits the use of taxpayer funds to bail out swaps entities.