The Ticker

Schadenfreude Wayback Machine: Glass-Steagall Edition

By Kirk Shinkle

Posted: March 27, 2009

It's making the rounds today, but a quick skim of this 1999 article on the repeal of Glass-Steagall is just full of all sorts of infuriating passages. Give it a read.

From the New York Times on Nov. 5, 1999:

CONGRESS PASSES WIDE-RANGING BILL EASING BANK LAWS

A lead quote from a familiar name:

''Today Congress voted to update the rules that have governed financial services since the Great Depression and replace them with a system for the 21st century,'' Treasury Secretary Lawrence H. Summers said. ''This historic legislation will better enable American companies to compete in the new economy.''

It was true, until it wasn't.

Machine, Glass Brick,

My, interest , Machine Glass Brick, ou machine Glass, ( manufared Brick Glass, thanks.

Enzo Gaviglia @ Mar 28, 2009 14:31:14 PM

Glass-Steagall

Permiting banks to sell and trade mortgage backed securities and collateralized debt obligations was not such a great idea as we now know. The repeal of Glass-Steagall allowed the foxes to join forces with the weasels and take charge of the hen house. No, we don't learn from the past and yes, we do soon forget. One thing we do know for certain is that the American taxpayer is always the one left holding the bag in the end.

Mike Ullman of OH @ Mar 27, 2009 16:45:07 PM

We do know

this bill was sponsored by three Republicans named Gramm, Leach and Bliley. What we don't know is exactly who WROTE it.

We'll probably never know. But we can bet it was actually physically written by the banks, lawyers paid by the banks or lobbyists paid by the banks.

Perhaps we need laws that require detailed disclosure of the drafter(s) of any bill.

Perhaps the norm ought to be at Congress:

Tell me who wrote it for whom, I'll announce that on C-span and then I'll tell you whether I'm going to vote for it or not.

Muser of NM @ Mar 27, 2009 16:11:04 PM

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The Ticker

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Kirk Shinkle is a senior editor at U.S. News. He writes daily about ups and downs in equity markets, sectors and stocks. Formerly, he covered business and economics on both coasts for Investor's Business Daily.

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