Zeev's Turnips Talk Politics (ZTTP)

[sylvester80]

Republicans are 100% to blame for credit crisis. Proof here:

As usual traitor pukes love to rewrite history. The fact is this. In 1999 McCain's own chief economic advisor Phil Gramm proposed the Gramm-Leach-Bliley Act, which essentially repealed the Glass Steagall Act which was there to protect things like the current credit crisis from happening. A Republican controlled congress approved the measure. From 2001 to 2006, during a time when Republicans controlled all 3 branches of government and using McCain's own DEREGULATION of Gramm's Act, greed and the current credit crisis orgy took place with the housing bubble and toxic mortgages. Republicans are 100% to blame for this credit crisis and that is A FACT!!

http://www.bestsyndication.com/?q=20080923_christopher_cox_paulson_bush_plan_glass_seagull_act.htm


The Glass-Steagall Act of 1933 separated the banking industry from the investing business. Up until that time banks were prohibited from owning or operating other financial companies.

During the Great Depression, banks got into trouble because of their investments. This prompted President Franklin Delano Roosevelt to take action to prevent that from happening again. In 1933 Senator Glass said “Here we prohibit the large private banks whose chief business is investment business, from receiving deposits. We separate them from the deposit banking business.”

Banks were supposed to be in the business of making loans. The Glass Steagall Act forced the banks to separate their investment businesses. This act prompted J.P. Morgan & Company to spin off Morgan Stanley from the JPMorgan bank.

Gramm-Leach-Bliley Act of 1999

Senator Phil Gramm (R-TX) wanted to deregulate the banking industry and return the banking and stock markets to where they were before the Great Depression. In 1999 Gramm proposed the Gramm-Leach-Bliley Act, which essentially repealed the Glass Steagall Act. The act did leave the Federal Deposit Insurance Corporation (FDIC) provisions intact.

Banks had been seeking the repeal of this act since the 1980s. The banks began to lobby heavily in the 1990s and laid out more than $200 million for lobbying in 1998, according to the Center for Responsive Politics.

Republicans supported the act and Democrats opposed it. The bill passed the Congress and was signed into law by President Bill Clinton on November 12, 1999. Although deposits up to $100,000 were still insured, the banks were now allowed to get into the securities business.

The act allowed banks to securitize their mortgages, and sell them. Citigroup, JPMorgan Chase and other large banks began to offer mortgage-backed securities (MBS) and collateralized debt obligations (CDO) to investors all around the world.