Wall Street deregulation pushed by Clinton advisers, documents reveal

[mazzarro]

Last edited Sun Apr 20, 2014, 01:30 PM - Edit history (1)

Wall Street deregulation, blamed for deepening the banking crisis, was aggressively pushed by advisers to Bill Clinton who have also been at the heart of current White House policy-making, according to newly disclosed documents from his presidential library.

The previously restricted papers reveal two separate attempts, in 1995 and 1997, to hurry Clinton into supporting a repeal of the Depression-era Glass Steagall Act and allow investment banks, insurers and retail banks to merge.

A Financial Services Modernization Act was passed by Congress in 1999, giving retrospective clearance to the 1998 merger of Citigroup and Travelers Group and unleashing a wave of Wall Street consolidation that was later blamed for forcing taxpayers to spend billions bailing out the enlarged banks after the sub-prime mortgage crisis.

The White House papers show only limited discussion of the risks of such deregulation, but include a private note which reveals that details of a deal with Citigroup to clear its merger in advance of the legislation were deleted from official documents, for fear of it leaking out.

“Please eat this paper after you have read this,” jokes the hand-written 1998 note addressed to Gene Sperling, then director of Clinton's National Economic Council.

http://www.theguardian.com/world/2014/apr/19/wall-street-deregulation-clinton-advisers-obama

I am saddened by the fact that it was a Democratic president that essentially gave way to the ravages of the financial industry to rape and pillage the world today. And ex-President Clinton with all his acumen and political wizardry, is a major disappointment in this regard.

More also the fact that Podesta is still in the government in the Obama administration again. I wonder what other turd he will leave the country/world with by the end of the administration

[antigop]

1. Thanks for nothing, Bill. Commodity Futures Modernization Act /Glass-Steagall repeal. nt

[DURHAM D]

2. Blaming only the White House for this just gets old.

The repeal passed the Senate 90–8 and the House 362–57.

[sabrina 1]

9. Defending it at all is pointless. It was disastrous for the American people which is the main

point. And we've had years to try to restore at least the equivalent of Glass Steagal. A great time would have been Jan. 2009 after the disastrous results of all that deregulation were fully exposed.

[sulphurdunn]

19. The people who actually rule

this country would never hear of such a thing.

[Octafish]

27. Really. Must bring in the Meyer Lansky of the War Party.

After personally shepherding the bank deregulation legislation, the dishonorable Phil Gramm provided the Washington-Wall Street Axis of Evil with his own Swiss bank and disappeared a lot of loot in '08.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4055207

Guess who got to pay the bill?

[AgingAmerican]

3. Glass steagall

Was rendered toothless before Clinton took office by the Depository Institutions Deregulation and Monetary Control Act of 1980.

[KoKo]

5. Well...to be crude the Dentures were removed under Clinton.

And, that both Dems and Republicans voted for it can't be denied. Just saying.

[AgingAmerican]

7. The symbolic repeal passed by a veto proof majority

You are correct, they are all to blame.

[joshcryer]

30. The Democrats repealed it to get anti-redlining laws passed.

Carter himself was for getting rid of Regulation Q because they thought it hampered minorities ability to work with the market place (that it was the reason rates were cyclical).

Ironically, perhaps, the Democrats were thinking they were getting a two-fer. Get rid of redlining practices, and get minorities in houses.

Of course, the Republicans saw the opportunity and used it to kill Fannie Mae and Freddie Mac. While lining their pockets no less.

[Jack for Sanders]

8. Pushed by Bert lance and signed by Jimmy Carter

Lance was a crook and Carter's pal and budget director.

That little bit of deregulation led to the collapse of about 3500 S&L's in the mid 80's.

Fortunately the collapse happened during Reagan's term so we can blame him for that too.

[joshcryer]

29. Regulation Q wasn't that big a deal.

It is true the banking industry has been chopping away at the regulations for decades, though. Dodd-Frank actually brought back Regulation Q (now called Regulation D).

[99Forever]

4. I doubt this comes as much of a surprise to any thinking person.

This is but one reason among many that no one from that family should ever be nominated as a Democrat to any office, ever again.

[KoKo]

6. Agree...

[lonestarnot]

10. Amen.

[sabrina 1]

11. So true. n/t

[Dragonfli]

13. To be fair they are different people and could have diverse opinions regarding the financial elite

To be completely fair however she has shown the same proclivities, is also DLC, and has proven that she is of the same mind and may be even more extreme than Bill regarding right wing economic policies and so should definitely never be nominated as a Democrat to any office on her own merits (or lack thereof).

[sulphurdunn]

18. She will be

the presidential candidate of the Democratic Party in 2016. That was decided way back in 2008.

[Enthusiast]

32. +1 an entire shit load.

No more Bush and no more Clinton presidents.

[mike_c]

12. two parties, each serving the interests of the 1%....

eom

[1000words]

14. Good cop/Bad cop

Go team!

[Vincardog]

17. Bad Cop / Disgusting Perverted Cop

Go Team!!

[cantbeserious]

15. Bill Clinton - One Of Best The Right-Leaning Democratic (Moderate Republican) Presidents In History

eom

[WhiteTara]

16. Larry Summers. Phil Graham

who pushed Jim Wright out who was trying to protect the country. It was really a bogus charge, but as a Democrat, he was pushed out. Clinton did nothing, he was fighting impeachment.

[Agony]

20. With friends like these...

after just so much of this, being socially liberal no longer counterbalances being on the wrong side of the root cause of economic injustice/fairness/parity/equality or whatever you want to call it.

Careful, I mustn't ask too much of my Democratic representatives lest I become a purity pony seeker.

[Yo_Mama_Been_Loggin]

21. There was an article in the WSJ about 1994

Where the administration was arguing for the repeal of Glass-Steagle.

[Ichingcarpenter]

22. Tom Tomorrow was warning of us during that time.

Look it up he had tons of toons on it and the dangers it brought to America.

[Populist_Prole]

24. I remember them well

Tom really roasted Clinton but good. Not only on his almost pathalogical enthusiasm for trade agreements, but his sneering condescention to those that complained as well. I didn't realize it then, but Bill Clinton was definitely the first 'Third Way' president.

[geretogo]

23. I still remember when George Wallace Gov. Alabama said ," there's not a dimes worth of difference

between the Democratic and Republican parties . It's looking more and more
like he was right .

[Scuba]

25. This is why I say the two parties are not different enough.

[Otelo]

26. Obama hired the same advisers

From the article.

[Octafish]

28. Larry ''What Does Goldman Think?'' Summers.

http://www.democraticunderground.com/?com=view_post&forum=1002&pid=3683586

[mylye2222]

31. GREAT EXPOSING TRUTH POST

ONE of the reason I dont want Hillary as candidate and next POTUS.

[antigop]

33. thanks for nothing, Bill. nt

[el_bryanto]

34. I'm surprised this is news

This has been well known for years and most books on the housing meltdown underline that there were rules proposed that would have stemmed the damage, but they were shot down (even a discussion of the rules was shot down) by Clinton appointees.

Bryant

[woo me with science]

35. K&R And the dismantling of democracy for plutocracy continues...

This is the cancer of corporate-purchased elections and politicians. Clinton also gave us NAFTA.

And then they gave us an Obama corporate Trojan horse: austerity, TPP, corporate education, banker protection.

And come 2016 they want to feed us yet another Third Way traitor.

No. More. Corporatists. And. Warmongers. Period.

The country cannot survive it...if the country is even salvageable at this point.

It's time to stop pretending that these people are just another flavor of Democrat and that this is just politics as usual. The Constitution is being dismantled. We are now a surveillance state. Protest and whistleblowing are being criminalized. Journalism is being replaced by a propaganda machine. Our country is being sold to the highest bidder, and millions are being driven into poverty and despair. The wealth of billionires has been doubled since 2009 through policy.

And now this administration is handing control of the internet, control of information and communication, to corporations.

We can't afford Third Way and Republican rule anymore. We will not survive it.

[antigop]

36. aw, woo, you're just a "hater". nt