Quote from trendlover:
Pabst, I am putting pieces together to learn, like many people are. I try to research and read, so to me left or right reading is all ok. I am no expert on politic history (and you are not so dumb to not see that about me) so tell me how Robert Rubin is involved with commodoties futures modernization act. (And be polite) I am willing to hear.
I know Robert Rubin was advisor to Clinton at one time, treasury secretary? So please explain to me.
Rubin as was Gramm was a driving force in the repeal of Glass Steagall. It doesn't make EITHER of them "dumb" or corrupt. It's all 20-20 hindsight. The repeal vote passed the Senate 90-8 with both Biden and McCain voting in support. Euro banks are levered even higher than us-that's why Europe is imploding also.
The commodities futures modernization act was an offshoot that basically allowed derivatives to be margined as if they were futures. Not a ridiculous idea. In a way they are futures. ZB has a 2% margin too. Obviously it was a mistake because unlike futures the margining could be circumvented. But for anyone to think this was Gramm's idea on his lonesome is disingenuous. The irony: Rubin wanted the legislation for banks (he became CEO of C months later) Gramm wanted it for Enron, lol.
This link is for below:http://newsgroups.derkeiler.com/Archive/Soc/soc.culture.polish/2008-09/msg01969.html
The 2001 Economic Report of the President, the last one written under Clinton, was unequivocal in dismissing Glass-Steagall and touting the virtues of financial deregulation:
"'Given the massive financial instability of the 1930s, narrowing the range of banks' activities was arguably important for that day and age. But those rules are not needed today, and the easing of interstate banking rules, along with the passage of the Financial Services Modernization Act of 1999 have removed them, while maintaining appropriate safeguards. These steps allow consolidation in the financial sector that will result in efficiency gains and provide new services for consumers.
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I'm sorry btw for being rude. In all honesty your brightness often hides your inexperience.