Blast from the Past: Wall Street's Deregulation Eleven Years Ago
Tue Apr 06, 2010 at 07:32:24 PM CDT
posted at Working America's Main Street blog under the title A Remembrance of Things Passed
The last time Congress took up major financial regulatory legislation they got it completely wrong. The result created a virtual certainty that within ten years we would face a combined economic and financial crisis the likes of which we had not experienced since the Great Depression.
It was 1999, and Senator Phil Gramm (R-TX) -- currently a vice chairman of the global banking giant UBS -- had ascended to the chairmanship of the Senate Banking Committee in the Republican-controlled Congress. It was Gramm who became the point man for the financial industry and chief sponsor of the deregulation plan known as Gramm-Leach-Bliley, the so-called Financial Services Modernization Act. Today, of course, there are many who point to the passing of that bill, and the following year's Commodity Futures Modernization Act, as having played a key role in eliminating many of the regulatory controls over a financial industry that was then allowed to run amok. more