Saturday, April 16, 2016

Along came Phil

Gramm, former Senator from the state of Texas to set a few facts straight in the Wall Street Journal about the cause of the financial crisis. I.e., it wasn't deregulation of the banking system;
Regulators also eroded the safety of the financial system by pressuring banks to make subprime loans in order to increase homeownership. After eight years of vilification and government extortion of bank assets, often for carrying out government mandates, it is increasingly clear that banks were more scapegoats than villains in the subprime crisis.
Similarly, the charge that banks had been deregulated before the crisis is a myth. From 1980 to 2007 four major banking laws—the Competitive Equality Banking Act (1987), the Financial Institutions, Reform, Recovery and Enforcement Act (1989), the Federal Deposit Insurance Corporation Improvement Act (1991), and Sarbanes-Oxley (2002)—undeniably increased bank regulations and reporting requirements. The charge that financial regulation had been dismantled rests almost solely on the disputed effects of the 1999 Gramm-Leach-Bliley Act (GLBA).
Prior to GLBA, the decades-old Glass-Steagall Act prohibited deposit-taking, commercial banks from engaging in securities trading. GLBA, which was signed into law by President Bill Clinton, allowed highly regulated financial-services holding companies to compete in banking, insurance and the securities business. But each activity was still required to operate separately and remained subject to the regulations and capital requirements that existed before GLBA. A bank operating within a holding company was still subject to Glass-Steagall (which was not repealed by GLBA)—but Glass-Steagall never banned banks from holding mortgages or mortgage-backed securities in the first place.
Bolds by HSIB in the above. As faithful readers here know, GLBA only repealed two provisions (of 34 original ones) of the Banking Reform Act of 1933 (AKA Glass-Steagall). And the two repealed were numbers 20 and 32--affiliations provisions that had prevented a holding company from owning separately both a commercial and an investment bank--not the actual provisions (16 and 21) defining and separating institutions that offer checking accounts from those underwriting corporate securities.

IOW, Bernie Sanders and his ilk are just flat out wrong to assert otherwise. Also, Sanders is wrong about the dangers of big banks, because elsewhere in his excellent piece, Gramm points out that the large banks were the ones that didn't need bailing out by TARP, because they were better capitalized. It was smaller banks that wouldn't have survived without the actions of Hank Paulsen, Ben Bernanke and Tim Geithner.
The subprime crisis was largely the product of government policy to promote housing ownership and regulators who chose to promote that social policy over their traditional mission of guaranteeing safety and soundness. But blaming the financial crisis on reckless bankers and deregulation made it possible for the Obama administration to seize effective control of the financial system and put government bureaucrats in the corporate boardrooms of many of the most significant U.S. banks and insurance companies.
Again, our bold in the above paragraph.

9 comments:

  1. After being in relationship with Wilson for seven years,he broke up with me, I did everything possible to bring him back but all was in vain, I wanted him back so much because of the love I have for him, I begged him with everything, I made promises but he refused. I explained my problem to someone online and she suggested that I should contact a spell caster that could help me cast a spell to bring him back but I am the type that don't believed in spell, I had no choice than to try it, I meant a spell caster called Dr Zuma zuk and I email him, and he told me there was no problem that everything will be okay before three days, that my ex will return to me before three days, he cast the spell and surprisingly in the second day, it was around 4pm. My ex called me, I was so surprised, I answered the call and all he said was that he was so sorry for everything that happened, that he wanted me to return to him, that he loves me so much. I was so happy and went to him, that was how we started living together happily again. Since then, I have made promise that anybody I know that have a relationship problem, I would be of help to such person by referring him or her to the only real and powerful spell caster who helped me with my own problem and who is different from all the fake ones out there. Anybody could need the help of the spell caster, his email: spiritualherbalisthealing@gmail.com or call him +2349055637784 you can email him if you need his assistance in your relationship or anything. CONTACT HIM NOW FOR SOLUTION TO ALL YOUR PROBLEMS'

    ReplyDelete
  2. Nice post.Keep sharing. Thanks for sharing.
    ghost mannequin

    ReplyDelete
  3. HAVE YOU LOST YOUR MONEY TO BINARY OPTION SCAM OR ANY ONLINE SCAM WHATSOEVER?.DO YOUR DESIRE CREDIT REPAIR[EQUIFAX, EXPERIAN, TRANSUNION? WELL, YOU HAVE FOUND REDEMPTION IN ASORE CORP.
    www.cryptoprecinct.online

    Asore Corp is a group of multinational Hacker's, an affiliate of Evil Corp. We make sure by all means necessary that our clients get the best of services on a🔐PAYMENT AFTER JOB IS DONE BASIS✅. Rather than send money and trust a criminal to fulfill your deal, you can make sure the job is done before WORKMANSHIP is paid for. You'll get excellent customer service.
    That's a 100% guarantee. Our Cyber security Technicians are on standby 24/7 to receive your job requests.

    ⚠️ BEWARE OF FRAUDSTARS looking to hoax.
    if you have been a VICTIM, contact : ✉️cyberprecinct@gmail.com for directives.
    Here, it's always a win for you.

    🔸OUR SERVICES🔸
    ➡️Binary Option funds recovery
    ➡️Social media hack
    ➡️Recovery of loan scam
    ➡️Credit repair (Equifax,Experian,Transunion)
    ➡️E mail hack
    ➡️College score upgrade
    ➡️Android & iPhone Hack
    ➡️Website design
    ➡️Website hack
    And lots more.

    DISCLAIMER: Asore Cyber Corp accepts no responsibility for any information,previously given to anybody by clients on as regarding the job. Asore Cyber Corp will not distribute contact information collected on any hacking job other than in the Asore corps Hacker's listings themselves, and will not sell contact information to third parties.

    CONTACT INFO:
    www.cryptoprecinct.online
    📧 asorehackcorp@gmail.com
    cyberprecinct@gmail.com

    Copyright ©️
    Asore Cyber Corp 2021.
    All rights reserved.

    ReplyDelete
  4. Great article! We will be linking to this particularly great article on our website. Keep up the good writing.

    성인야설

    ReplyDelete
  5. Hey there! I’m at work browsing your blog from my new iphone 3gs! Just wanted to say I love reading through your blog and look forward to all your posts! Keep up the outstanding work!

    립카페

    ReplyDelete
  6. What’s Happening I'm new to this, I stumbled upon this I have found It positively helpful and it has helped me out loads. I’m hoping to contribute & aid different users like its aided me. Good job.

    타이마사지

    ReplyDelete
  7. I do not know whether it’s just me or if everybody else encountering issues with your blog. It appears as if some of the written text within your posts are running off the screen. Can someone else please comment and let me know if this is happening to them too?

    안마

    ReplyDelete
  8. New World Coins are so important, it's time to buy more!

    Attached link: https://www.iggm.com/new-world-coins

    ReplyDelete