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Mike
The Gramm-Leach-Bliley Act
Thu Aug 18, 2011 8:33pm
99.230.70.126

That bill stripped numerous regulatory laws and even introduced a privacy act which removed transparency. It repealed the Glass–Steagall Act of 1933 which forbid banks to sell their risks to investment banks and insurance companies. This meltdown would NOT have happened if the Glass–Steagall Act act was left alone.

Banks would NOT have issued high-risk mortgages if they weren't allowed to sell any part of that risk. Insurance companies and hedge funds bought that risk in pieces. When the music stopped, the housing market collapsed, the insurance companies (ie AIG) and investment banks (ie Lehman Bros) ran out of cash to pay off the investors. Now the banks (the ones holding your money) are left holding a bag of toxic assets that was accumulating for a 8 year span.

I don't know if you've ever played craps before but the fundamentals of the game is similar to what the banks were allowed to do.

As to Barney, he was actually right. Fannie & Freddie were in great shape at the time that he said it. All the banks were making a ton of money issuing mortgages like candy. But regardless, besides the fact the GOP controlled the house and not Barney, what the banks were doing was not illegal. And it was not possible to undo millions of mortgages written up from as far back as 2000. It was a runaway train that wasn't going to be stopped until it crashed.

  • You have an error of facts. Lewis, Thu Aug 18 6:23pm
    When you say "strip" regulations, you imply that ALL regulations were removed - and they were not. There were, and are, ample regulations to have done the job - IF the Senate and House committees... more
    • The Gramm-Leach-Bliley Act — Mike, Thu Aug 18 8:33pm
      • . . . was illl-advised, to be sureLewis, Fri Aug 19 7:56am
        . . . but Clinton had made that into law before Bush ever took office. You've constantly beaten your drum about BUSH stripping the regulations - So, what regulations did Bush strip? The congressional ... more
        • I never said Bush stripped regulationsMike, Fri Aug 19 1:13pm
          There you go again, attributing something to me that I've never said. I said the GOP congress wrote the bill that did that. Yes, Bush was not responsible for signing it into law. Clinton did sign it... more
          • A number of things are obvious ...Lewis, Sat Aug 20 8:50am
            (1) You don't read. Oh - you COULD, of course; but don't. You're still confusing "oversight" with an accountancy audit. Oversight would be to thoroughly examine random mortgages, from the application ... more
          • In reverse order ...Lewis, Sat Aug 20 8:29am
            Frank was NOT of the minority party; at the time of his speech his party was in the majority and he personally was chairman of the House committee charged with oversight. His counterpart in the... more
            • Re: In reverse order ...Mike, Sat Aug 20 3:54pm
              Barney was instrumental in helping pass the Anti-Predatory Lending Act (H.R. 3915) to passage in 2007. That was the first year of the Dem takeover. Prior to that, the Repubs were in control. It is... more
              • Mike -Lewis, Sat Aug 20 9:21pm
                Until you man up, grow a pair of cajones and have the integrity to admit when you've been hit, I'm through with you. This entire exchange would have never existed had you not shot your mouth off... more
                • You came up empty again, I seeMike, Sun Aug 21 12:25am
                  I take responsibility for what I write, NOT what you read. I haven't been hit with anything but noise. If I post something that can collaborate your assertions and accusations then it exists. All you ... more
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