Phil Gramm, Jim Leach = depression

The Glass Steagel Act of 1933 was created to keep banks and securities firms apart. something Congress learned from the

last Depression .

Provisions that prohibit a bank holding company from owning other financial companies were repealed on November 12, 1999, by theGramm-Leach-Bliley Act.^[2][3]

The first Glass-Steagall Act was passed in February 1932 in an effort to stop deflation and expanded the Federal Reserve's ability to offer rediscounts on more types of assets and issuegovernment bonds as well as commercial paper.^[4] The second Glass-Steagall Act was passed in 1933 in reaction to the collapse of a large portion of the American commercial banking system in early 1933.

According to a summary by the Congressional Research Service of the Library of Congress:

In the nineteenth and early twentieth centuries, bankers and brokers were sometimes indistinguishable. Then, in the Great Depression after 1929, Congress examined the mixing of the “commercial” and “investment” banking industries that occurred in the 1920s. Hearings revealed conflicts of interest and fraud in some banking institutions’ securities activities. A formidable barrier to the mixing of these activities was then set up by the Glass Steagall Act.^[6]

The bill that ultimately repealed the Act was introduced in the Senate by Phil Gramm (Republican of Texas) and in the House of Representatives by Jim Leach (R-Iowa) in 1999. The bills were passed by Republican majorities on party lines by a 54-44 vote in the Senate[11] and by a 343-86 vote in the House of Representatives[12]. After passing both the Senate and House the bill was moved to a conference committee to work out the differences between the Senate and House versions. The final bipartisan bill resolving the differences was passed in the Senate 90-8 (1 not voting) and in the House: 362-57 (15 not voting). Having majorities large enough to override any possible Presidential veto, the legislation was signed into law by President Bill Clinton on November 12, 1999. [13]

The Banking lobby is playing with Wikipedia  entries, trying to divert attention away from the cause.

The wikipedia states that SIV's existed before the Repeal of G/S act, but the ones before the repeal were not mortgage based.

And that there was sub-prime loans before the repeal, and there was, but the repeal allowed the banks to sell them to Wall ST.

The argument for preserving Glass-Steagall (as written in 1987):

1. Conflicts of interest characterize the granting of credit – lending – and the use of credit – investing – by the same entity, which led to abuses that originally produced the Act

2. Depository institutions possess enormous financial power, by virtue of their control of other people’s money; its extent must be limited to ensure soundness and competition in the market for funds, whether loans or investments.

3. Securities activities can be risky, leading to enormous losses. Such losses could threaten the integrity of deposits. In turn, the Government insures deposits and could be required to pay large sums if depository institutions were to collapse as the result of securities losses.

4. Depository institutions are supposed to be managed to limit risk. Their managers thus may not be conditioned to operate prudently in more speculative securities businesses. An example is the crash of real estate investment trusts sponsored by bank holding companies (in the 1970s and 1980s).

The argument against preserving the Act (as written in 1987):

1. Depository institutions will now operate in “deregulated” financial markets in which distinctions between loans, securities, and deposits are not well drawn. They are losing market shares to securities firms that are not so strictly regulated, and to foreign financial institutions operating without much restriction from the Act.

2. Conflicts of interest can be prevented by enforcing legislation against them, and by separating the lending and credit functions through forming distinctly separate subsidiaries of financial firms.

3. The securities activities that depository institutions are seeking are both low-risk by their very nature, and would reduce the total risk of organizations offering them – by diversification.

4. In much of the rest of the world, depository institutions operate simultaneously and successfully in both banking and securities markets. Lessons learned from their experience can be applied to our national financial structure and regulation.^[6]

It looks as though this Depression can be traced back to:

Phil Gramm (Republican of Texas)

Jim Leach (R-Iowa)

Authors of the bills giving Banks permission to sell sub-prime to Wall St and Fed Institutions and in turn to the WORLD.

How much money did the Banking Lobby donate to these two congressmen that year? AND BEFORE?

Gerald

Series 7 & 13

Greenspan said something on TV about once in a hundred year event, THIS IS NOT A NATURAL EVENT, it was man made, as we see.

What is Greenspan talking about, once in a hundred years

mass regulation failure.

.

Worlds biggest Criminal Combine, and these legistators.

.