October 26, 1999: Molly Ivins on the repeal of Glass-Steagall

[flpoljunkie]

The 1999 Gramm-Leach Act is about to replace the 1933 Glass-Steagall Act, with the result that bankers, brokers and insurance companies can all get into one another's business. It's a done deal except for the final vote on the conference-committee agreement. The inevitable result will be a wave of mergers creating gigantic financial entities.

In a stupefying moment of pomposity, a New York Times editorial solemnly concluded: "The principle of freer competition is the economic engine of this era. But the other imperative is to demand openness, financial prudence and safeguards so that the vast new concentrations of wealth and power do not create new abuses." When was the last time you saw a vast concentration of wealth and power that DIDN'T create abuses?

But the bad news is:

"Too Big to Fail" will be the new order of the day. And guess who gets left holding the bag when they're too big to fail? One of these monsters goes down, and it will cost as much as the whole S&L debacle.

Alan Greenspan, not heretofore associated with the populist left, told bankers in a speech two weeks ago that the bill will create a class of super-institutions Too Big to Fail. In his usual impenetrable linguistic style, he allowed as how some new form of supervision will have to be created, but the regulators are well behind the financial system.

— Consumers: Phil Gramm promises us that increased competition will bring about a wonderful world of dandy new services at lower prices. Not a single soul thinks this bill will do anything but cause a tidal wave of mergers and acquisitions, leaving us with fewer options than ever. We'll get fewer and more powerful institutions with the ability to overcharge for products because of their market share.

http://www.creators.com/opinion/molly-ivins/molly-ivins-october-26-1999-10-26.html

[ananda]

1. I still miss Molly Ivins..

.. and Ann Richards.

[DCBob]

2. Wow... was Molly on target...

miss her too.

[SpiralHawk]

3. "Smirk." - Phil Gramm (R - Corporatist)

"Too bad about you American proles. We Republicon fatcats have got ours. Bwaa ha ha ha ha. Smirk."

- Phil Gramm (R - Corporatist)

[DCBob]

4. We were just a "nation of whiners" and the financial crisis was a "figment of our imagination"..

remember that? What a total f'king idiot.

[SpiralHawk]

5. Gramm is projecting, of course, since Republicons & Teabaggers have...

...clearly established that all they do is WHINE and obstruct and otherwise trash the United States of America.

[SharonAnn]

6. Not to mention his wife, Wendy Gramm, on the board of Enron who lobbied

for removal of regulations about Enron's activities.

So, they both have a track record of stealing from the American public.

[Kdillard]

7. Wow talk about nailing it.