Skip to comments.Obama Voted 'Present' on Mortgage Reform
Posted on 10/15/2008 3:38:34 AM PDT by IrishMike
The only banking 'deregulation' in recent years was that of Fan and Fred.
In each of the first two presidential debates, Barack Obama claimed that "Republican deregulation" is responsible for the financial crisis. Most viewers probably accepted this idea, especially because Republicans generally do favor deregulation.
But one essential fact was missing from the senator's narrative: While there has been significant deregulation in the U.S. economy during the last 30 years, none of it has occurred in the financial sector. Indeed, the only significant legislation with any effect on financial risk-taking was the Federal Deposit Insurance Corporation Improvement Act of 1991, adopted during the first Bush administration in the wake of the collapse of the savings and loans (S&Ls). FDICIA, however, substantially tightened commercial bank and S&L regulations, including prompt corrective action when a bank's capital declines below adequate levels and severe personal fines if management violates laws or regulations.
If Sen. Obama had been asked for an example of "Republican deregulation," he would probably have cited the Gramm-Leach-Bliley Act of 1999 (GLBA), which has become a popular target for Democrats searching for something to pin on the GOP. This is puzzling. The bill's key sponsors were indeed Republicans, but the bill was supported by the Clinton administration and signed by President Clinton. The GLBA's "repeal" of a portion of the Glass-Steagall Act of 1933 is said to have somehow contributed to the current financial meltdown. Nonsense.
Adopted early in the New Deal, the Glass-Steagall Act separated investment and commercial banking. It prohibited commercial banks from underwriting or dealing in securities, and from affiliating with firms that engaged principally in that business.
(Excerpt) Read more at online.wsj.com ...
Puts O’Bomber in the cross hairs. I hope McCain pulls the trigger.
save for later read.
Otherwise many of the financial sector "buy-outs" could not have occurred.
He appears to be doing a service for the faithful, but he is really a financial middleman, enriching himself and his friends.
Holier-than-thou Barack and Michelle tell graduates to avoid going into careers in finance.
Are they trying to minimize competition?
Disgusting. The tough thing about Obama is that there are so many things on this guy that it is tough to narrow them down.
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