New Clinton-Era Docs Reveal Insider Push for Wall Street Deregulation

[xchrom]

https://www.commondreams.org/headline/2014/04/19-0


A Financial Services Modernization Act was passed by Congress in 1999. (Photo: Steve Helber /AP)

Released by the Clinton Library on Friday as part of a large declassification of presidential documents, Roberts' reporting shows how these specific internal memos reveal how top-level advisors tried to pressure Clinton to follow their advice on Wall Street deregulation. In addition, read carefully, portions of the hand-written notes show the pro-active manner by which the Clinton team kept aspects of their motivations—which included providing preferential treatment to large financial firms like Citigroup—out of the public record.

As Roberts reports:

A Financial Services Modernization Act was passed by Congress in 1999, giving retrospective clearance to the 1998 merger of Citigroup and Travelers Group and unleashing a wave of Wall Street consolidation that was later blamed for forcing taxpayers to spend billions bailing out the enlarged banks after the sub-prime mortgage crisis.

The White House papers show only limited discussion of the risks of such deregulation, but include a private note which reveals that details of a deal with Citigroup to clear its merger in advance of the legislation were deleted from official documents, for fear of it leaking out.

“Please eat this paper after you have read this,” jokes the hand-written 1998 note addressed to Gene Sperling, then director of Clinton's National Economic Council.



Earlier, in February 1995, newly-appointed Treasury secretary Robert Rubin, his deputy Bo Cutter and senior advisers including John Podesta gave the president three days to decide whether to back a repeal of Glass-Steagall.

The reporting goes on to point out the prominent role these Clinton advisors—Rubin, Sperling, and Podesta—played and continue to play in the Obama administration.

[Wilms]

1. Sperling was HRC's campaign advisor. n/t

[octoberlib]

2. I wonder if these documents were released due to Nomi Prins' book, All the Presidents Bankers.

I'm currently reading it and am up to the Reagan era but in interviews she mentioned that she received documents through the FOIA from the Clinton library.

Most Presidents rely on their economic advisers and most economic advisers come from Wall street where the mantra is " to remain globally competitive we need to get rid of regulations" . What they really mean is "to line our pockets with lots of cash we need to de-regulate" .

FDR gave us the New Deal but loved free trade and his Free Trade Commission was made up exclusively of bankers. LBJ gave us the Great Society but was a big proponent of laissez faire economics. I think Wall Street's been running a con game for decades .

Link to Prins' interview

http://www.salon.com/2014/04/15/we_are_in_great_danger_ex_banker_details_how_mega_banks_destroyed_america/

[snot]

3. K&R'd!

[octoberlib]

4. From the article:

Whether it reflects poorly or favorably on the legacy of Bill Clinton, the nature of some of Rubin's advice on the issue makes it appear that the president was urged to stand aside so that the Treasury Secretary himself could take the lead on the reforms.




Jesus.

[pa28]

5. The revolving door at it's worst.

Rubin shaped a bad policy benefiting Citi and Citi gave him an obscene money shower on the way out. You would think Democratic administrations would put a stop to this practice instead of continuing to promote it.