Bill Clinton Signs Repeal of Glass-Steagall

[ben_meyers]

Also known as the Financial Services Modernization Act of 1999, leading to most of todays economic problems. Glass-Steagall was the bill that was put into place after the "Great Depression" to prevent another one.


Caption this photo!!


Bill Clinton Signs Repeal of Glass-Steagall
Surrounded by Bush's cronies.

And what is the point you ask? Many of Clinton's advisors are showing up again.

Where is the change in that?

[PBS Poll-435]

1. The bill that Clinton signed was passed overwhelmingly. VETO PROOF

By the Senate 90-8,

and by the House 362-57.

[ben_meyers]

4. And dosen't that make it even worse?

Did he even try, did Bill and his advisors issue a signing statement telling us what the dangers were?

Oh yeah, he did

PRESIDENT CLINTON: (Applause.) Thank you very much. Thank you. Thank you. Thank you, and good afternoon. I thank you all for coming to the formal ratification of a truly historic event. Senator Gramm and Senator Sarbanes have actually agreed on an important issue. (Laughter.) I -- MR. PODESTA (?): But I'm sitting in between them. (Laughter.)

PRESIDENT CLINTON: Stay right there, John! (Laughs.) I asked Phil on the way out how bad it was going to hurt him in Texas to be walking out the door with me. (Laughter.) We decided it was all right today. Like all those before me, I want to express my gratitude to those principally responsible for the success of this legislation. I thank Secretary Summers and the entire team at Treasury, but especially Undersecretary Gensler for their work, and Assistant Secretary Linda Robertson. And I thank you, Chairman Greenspan, for your constant advocacy of the modernization of our financial system. I thank you, Chairman Levitt, for your continuing concern for investor protections and I thank the other regulators who are here. I thank Senator Gramm and Senator Sarbanes, Chairman Leach and Congressman LaFalce and all the members of Congress who are here. Senator Dodd told me the Sisyphus story, too, over and over again, but I've rolled so many rocks up so many hills, I had a hard time fully appreciating the sgnificance of it. (Laughter.)

But I do want to thank all the members here and all those who aren't here and I'd like to thank two New Yorkers who aren't here who have been mentioned -- former Secretary of the Treasury Bob Rubin, who worked very hard on this, and former chairman, Senator Al D'Amato, who talked to me about this often. So this is a day we can celebrate as an American day. To try to give some meaning to the comments that the previous speakers have made about how we are making a fundamental and historic change in the way we operate our financial institutions, I think it might be worth pointing out that this morning we got some new evidence on the role of new technologies in our economy which showed that over the past four years productivity has increased by a truly remarkable 2.6 percent. That's about twice the rate of productivity growth the United State experienced in the 1970s and the 1980s. In the last quarter alone, productivity grew at 4.2 percent. Over the past four years, productivity has increased by a truly remarkable 2.6 percent. x x x percent.

That's about twice the rate of productivity growth the United States experienced in the 1970s and the 1980s. In the last quarter alone, productivity grew at 4.2 percent. This is not just soom aloof statistic that matters only to the Federal Reserve, the Treasury and Wall Street economists. It is the key to rising paychecks and greater security and opportunity for ordinary Americans. And the combination of rising productivitiy, more open borders and trade, working to keep down inflation, the dramatic reduction of the deficit and the accumulation of the surplus and the continued commitment to the investment in the Aemrican people, research and development and new productivy () technologies has given us the most sustained real wage growth in more than two decades with the lowest inflation in more than three decades.

I can tell you that back in December of 1992, when we were sitting around the table at the governor's mansion trying to decide what had to be in this economic program, the economists that I had there, who normally are thought to be -- you know, you say, "Well, they're Democrats, they'll be more optimistic" -- none of them believed that we could grow the economy for this long with an unemployment rate this low and an inflation rate this low. And it's a real tribute to the American people. So what you see here, I think, is the most important recent example of our efforts here in Washington to maximize the possibilities of the new information-age global economy, while preserving our responsibilities to protect ordinary citizens and to build one nation here. And there will always be competing interests.

You heard Senator Gramm characterize this bill as a victory for freedom and free markets. And Congressman LaFalce characterized this bill as a victory for consumer protection. And both of them are right. And I have always believed that one required the other. It is true that the Glass-Steagall () law is no longer appropriate for the economy in which we live. It worked pretty well for the industrial economy, which was highly localized, much more of the general challenge that will face lawmakers of both parties, that will face liberals and conservatives, that will face all Americans as we try to make sure that the 21st century economy really works for our country and words for the people who live in it. That's about twice the rate of productivity growth the United States experienced in the 1970s and the 1980s. In the last quarter alone, productivity grew at 4.2 percent.

My goodness, they were twisting his arm.

more at

http://www.ustreas.gov/press/releases/ls241.htm

[Midwestern Democrat]

6. What a difference a decade makes. The repeal of Glass Stegall had

been attempted before - by Reagan and Bush I in the 1980s and early '90s - the Democratic House killed all three attempts. Fast forward a decade and to see such a lopsided vote in favor - what in God's name happened?!?!

[NorCalDem]

18. Republican house/senate, "contract with America"

and the virtually ZERO political power being wielded by Democrats at the time due to Clinton's impeachment troubles. The country was sick in the head by 1999, mostly due to Republicans dominating airtime on TV/radio, as one can see from Bush's election merely one year later.

[JVS]

23. 3rd way.

[Skwmom]

42. Not before it went to conference committee.

In the Senate, the MAJORITY of the Dems voted against it. So don't try to make Clinton out to be the victim of Congress. Clinton teamed up with the Republicans to pass this sorry piece of legislation that the "stupid" progressives were warning against.

[Laelth]

48. Clinton fought against the party WAY too often.

I am glad he was President and a Republican was not, but Clinton was terrible for the party and, in some ways, not good for the people either.

The United States is a LIBERAL Country.

:dem:

-Laelth

[elleng]

2. The 'CHANGE' is

now we know it was a mistake, and many of these/those are smart enough to learn from mistakes, contra the repugs.

[PBS Poll-435]

3. The absolute biggest problem was the lack of regulatory oversight

By the Assholes(R-USA) that after the 9/11 elections of 2002 thought that they had a permanent majority and therefore didn't actually have to do any work.

[ben_meyers]

5. No, the biggest problem was that the effective regulations

were repealed. There were few regulations left to enforce.

[elleng]

9. That's what happens when the 'enabling' legislation is repealed.

.

[PBS Poll-435]

10. There is a reason that we have oversight committees and a Bureaucracy

Not every enforcement action needs to be derived from legislation.

[elleng]

12. Bureaucracy cannot enforce something

not in legislation.

oversight committees, of course, could have done something, but there had been a long-term fight for G-S repeal, so not likely someones would be on hill seeking to 'enforce.'

[PBS Poll-435]

15. Disagree with you there.

The IRS issues regulatory rulings every day without any action being taken by Congress.

[elleng]

19. 'Regulatory rulings' are based on SOMETHING,

aren't they? On a law, perhaps, or on someone's interpretation of a law?

[Blarch]

53. I agree.

[elleng]

7. dupe

.

[elleng]

8. dupe

sorry

[rockymountaindem]

13. If we know it's a mistake, why are we still seeking the advice of it's biggest proponents

namely Summers and Rubin? Would we consider taking economic advice from Phil Gramm? Of course not. Why listen to his teammates in that debacle? Good question.

[elleng]

21. Glass-Steagal repeal was advocated by MANY

in 'Washington, for a long time,' certainly not 'essentially' by Summers and Rubin.

[rockymountaindem]

25. I could ask you "if your friends all jumped off a cliff, would you?"

But I guess that would be trite. Instead I'll ask, shouldn't we be rewarding the people who didn't get taken in by that rather than those who did? This would be like hiring back Tenet at the CIA and leaving Richard Clark out of the loop.

[elleng]

28. Should we be thinking about 'rewards' for some,

or capable, knowledgeable, experienced people who can jump right in to help fix the mess?

[rockymountaindem]

29. Do you see the contradiction in what you just said?

Instead of giving jobs to people who have been proven right, we are giving them right back to people who made some of the bad decisions that lead us to where we are today. These are not the "capable, knowledgeable, experienced people who can jump right in to help fix the mess". Summers and Rubin are two people who helped make the mess. As such, they should not be rewarded with new administration jobs (Summers) or the ear of the President (Rubin).

[elleng]

30. I'm not aware of any who have been 'proven right' on making the mess,

and rely on O's judgment to see to it that none make more of a mess.

[elleng]

38. Just saw this:

http://www.salon.com/tech/htww/

[Skwmom]

44. They have a track record of creating messes, not fixing them.

[anonymous171]

11. Shows the importance of congress. We control congress.

Bill was dealt a bad hand. Not making excuses for him. Some of shit he pulled was inexcusable, but don't try to pin this entirely on him.

[ben_meyers]

14. I don't pin any of it on Clinton

I don't believe for a second that he was smart enough to know what he was doing. I'm more concerned that the same gang of advisors are showing up again in the new administration.

[anonymous171]

I see your point.

I think/hope Obama knows what he is doing. He's been mostly right about everything else before.

[Skip Intro]

27. Except in your OP, where you try to pin it on Clinton.

come on

[NorCalDem]

16. Yeah, it's all Clinton's fault

The veto proof Republican house and senate had NOTHING to do with it. Oh, and don't forget all the political power Clinton was wielding in '99 in light of his impeachment proceedings...

Are you really this dumb?

[ben_meyers]

20. See # 14

As to being dumb, possibly. But blind? Not so much.

[NorCalDem]

47. Okay, i see your point

Still, i think you're overreacting. Sorry for calling you dumb :) It came off as more offensive when i read it later than when i typed it :) I can hidez behind my intertubez!!1!

[Marrah_G]

41. The OP doesn't give a shit about reality

His motives are obvious and I hope the Mods take notice.

[Raineyb]

45. He didn't have to sign it.

He could have vetoed it.

And he certainly did NOT have to do a big photo op signing ceremony which is what that picture looks like. One usually doesn't do photo ops for the signing of bills that one doesn't like.

Regards

[AtomicKitten]

17. Yikes! Is that Phil Graham? I oppose anything he applauds.

[cliffordu]

22. Where's the change in your sniveling and pre-condemnation of the

President-elect???

[ben_meyers]

31. I haven't surrounded him with the same gang of idiots

that are responsible for much of our current situation. Maybe it was Rahm.

[cliffordu]

33. Could be they will unfuck it under orders from the POTUS.....

not run amok....

:shrug:

[RollWithIt]

24. That bill was veto proof.... doesn't excuse the photo-op, but it's hard to pin that on him....

Everyone voted for that bill. Actually, I was a second year political science major and when I studied it at the time it didn't seam nearly as bad as it turned out to be. The main issue with the bill was that after it passed there was very little oversight of it until this day. Up until the early parts of this decade legislation actually got watched AFTER it passed and changes were made to improve the system. The Republicans never really understood the concept of oversight when they had their dominant control. It was all about pork and nothing else. Kind of ironic really.

[tomp]

43. that just confirms my belief....

....that "everyone" in washington is pretty damn corrupt. neither party is on "our" side.

[HughMoran]

26. Flaming idiot

Wow, the stupidity never ceases...

[Jennicut]

32. The problem is not the repeal of the law but how Wall St. was allowed to take advantage of it under

Shrub. This crap didn't start until the mid-2000's. I am tired of seeing Clinton blamed for the greed of Wall St. getting out of control and Shrub's uncaring attitude to wards everything. Rethugs were in control of supervision over the entire country for 12 freaking years, they had the committees.

[Radical Activist]

34. Guilt by association was lame for William Ayers

and its just as lame now.

[Onlooker]

35. This is right wing garbage

Clinton's action gave us a very strong economy, and nothing in politics is ever permanent. Clearly the repeal of Glass-Steagall was effective for a number of years, and my guess is that even now many of those who benefited from the Clinton boom are still thankful for what Clinton's economy accomplished. The failure was that the Republicans, even when they controlled Congress and the White House, didn't do anything new. Every administration acts for the short and medium term, not the long term because that's not how our political system operates. Clinton took good care of the economy for 8 years, but Bush followed up with nothing. Obama has already proposed a number of changes and at least the stock market is responding favorably.

[Jennicut]

36. Bush allowed the country to be bankrupted. He allowed

his cronies lots of taxbreaks and no supervision, like a kid running the candy store. The man was a stooge for Cheney and co to become rich and fat.

[Hippo_Tron]

37. The bill was veto proof, he had three options...

Veto it and have it overridden, not sign it and just let it pass, or sign it and get a photo op and some good publicity. Clinton picked the third option. In retrospect he might've looked better today if he had picked option 1 or option 2. But no matter what it was going to pass.

[Marrah_G]

40. I am sure the OP knows that- spreading RW talking points is WAY more fun though

I fucking despise seeing this shit on DU.

[Raineyb]

46. That's how I see it.

It's hard to complain about getting the blame for a passage of a bill when you have a photo op signing for it.

[Hippo_Tron]

50. You do indeed open yourself up to criticism when you take a photo op

But Obama would be foolish to not put people on his economic team simply because their former boss chose to take a photo op. We don't know how Clinton or Clinton's team would've acted if they had been dealt a different hand.

[Marrah_G]

39. Thanks for spreading the RW BS here.

I could hear the same crap spewing from the lips of Savage or Sevron or that pig Rush.

[Zhade]

49. A mistake.

NT!

[bridgit]

51. Mm hm, but the yada-yada component was that Johnson tinkered with the notion...

as a way to finance the Vietnam war debt = ho hum...Clinton was just the hill billy that stepped into years of serpentine doings all concerning undeclared war shenanigans ala Lady Bird Johnson's KBR holdings etc.........................

[mdmc]

52. Is the the 2009 cabinet?

[Vinca]

54. He should have vetoed it.

On the positive side, I bet all those people clapping have lost a fortune during this mess.

[mtnsnake]

55. Yeah the economic collapse, Iraq War, & poor response to Katrina are Bill's fault, not Bush's

What else is new in Bizarro World.