Please enlighten (at least) me. No sarcasm intended.
The Financial Services Modernization Act of 1999 was basically a rescinding of the Glass-Steagall Act of 1933. Pushed by Republicans and signed into law by Bill Clinton.
It did away with restrictions on the integration of banking, insurance and stock trading imposed by the Glass-Steagall Act of 1933, one of the central pillars of Roosevelt’s New Deal. Under the old law, banks, brokerages and insurance companies were effectively barred from entering each others’ industries, and investment banking and commercial banking were separated.
It also removed alot restrictions and overcite that Fannie Mae and Freddie Mac had, had imposed on them, alowing them to become more “independent”.
All and all, this was the catalyst for the avalanche. Mega bank mergers, no overcite and restriction on loans basically equating to CRA on steroids. (0 down 1% ARMS). Banks acting as seller, bank and broker that would repackage these worthless mortgages and sell them and trade them like they were real money.
These bastards made BILLIONS and now that their ride at the fun park is over they want to collect their golden parachutes and leave us with the bill.