The United States has had as much of Phil Gramm as we can stand. While Americans expect almost everyone to be on somebody’s payroll, we are now at a point where we wonder about two main subjects: “Who was paying Phil Gramm for stupidity?”, and “Where am I going to be working next week?”
As chairman of the Senate Banking Committee from 1995 through 2000, Phil Gramm was Washington’s most prominent and outspoken champion of financial deregulation. He played a leading role in writing and pushing through Congress the 1999 repeal of the Depression-era Glass-Steagall Act, which separated commercial banks from Wall Street.
(President Bill Clinton repealed the Glass-Steagall Act which had prevented the coupling of investment banking and lending. To be exact, on November 12, 1999, President Bill Clinton signed into law the Gramm-Leach-Bliley Act, which repealed the Glass-Steagall Act of 1933. One of the effects of the repeal is it allowed commercial and investment banks to consolidate. Economists have criticized the action.)
Phil Gramm also inserted a key provision into the 2000 Commodity Futures Modernization Act that exempted over-the-counter derivatives like credit-default swaps from regulation by the Commodity Futures Trading Commission.
Oh my Phil. When did you realize the brakes were burnt out on that freight train?
Credit-default swaps took down AIG, which has cost the U.S. $150 billion thus far.
It kinda makes you wonder who was padding Phil’s pocket. Don’t you love a politician that forgets about those he was elected to represent?
Christopher Dodd is now the chairman of the Senate Banking Committee. Richard Shelby is the ranking member.
Dodd said: “Under my chairmanship, we have worked to protect consumers from greedy credit card companies and sleazy lenders – and we have more work to do, to create an independent consumer financial protection agency.”