Lawrence Summers, the Glass-Steagall Act and Enron
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Posted 26 March 2009 - 06:48 AM
Lawrence Summers, 1999, about the decision to repeal the Glass-Steagall Act of 1933:
'Today Congress voted to update the rules that have governed financial services since the Great Depression and replace them with a system for the 21st century,' Treasury Secretary Lawrence H. Summers said. 'This historic legislation will better enable American companies to compete in the new economy.' [New York Times, Nov. 5, 1999]
And L.S. in 2000 on the California energy crisis:
..."During the California energy crisis of 2000, then-Treasury Secretary Summers teamed with Alan Greenspan and Enron executive Kenneth Lay to lecture California Governor Gray Davis on the causes of the crisis, explaining that the problem was excessive government regulation. Under the advice of Kenneth Lay, Summers urged Davis to relax California's environmental standards in order to reassure the markets. "
and this man is at the very top and center of the Obama administration's economic crisis rescue team?
More from the 1999 NYT article: CONGRESS PASSES WIDE-RANGING BILL EASING BANK LAWS
By STEPHEN LABATON
Published: Friday, November 5, 1999
...."The decision to repeal the Glass-Steagall Act of 1933 provoked dire warnings from a handful of dissenters that the deregulation of Wall Street would someday wreak havoc on the nation's financial system. The original idea behind Glass-Steagall was that separation between bankers and brokers would reduce the potential conflicts of interest that were thought to have contributed to the speculative stock frenzy before the Depression."
....'I think we will look back in 10 years' time and say we should not have done this but we did because we forgot the lessons of the past, and that that which is true in the 1930's is true in 2010,' said Senator Byron L. Dorgan, Democrat of North Dakota. 'I wasn't around during the 1930's or the debate over Glass-Steagall. But I was here in the early 1980's when it was decided to allow the expansion of savings and loans. We have now decided in the name of modernization to forget the lessons of the past, of safety and of soundness."
One Republican Senator, Richard C. Shelby of Alabama, voted against the legislation. He was joined by seven Democrats: Barbara Boxer of California, Richard H. Bryan of Nevada, Russell D. Feingold of Wisconsin, Tom Harkin of Iowa, Barbara A. Mikulski of Maryland, Mr. Dorgan and Mr. Wellstone.
Posted 26 March 2009 - 07:25 AM
And we note that there is NOTHING currently underway to return to Glass-Steagall, despite all the talk about returning to responsible regulation, and the trillions the current mess is costing us. As Raz noted, Volcker's been put out to pasture on tax policy.
Think corporations have too much power in Washington? VOTE
Posted 26 March 2009 - 09:41 AM
Volker should go fishing. They can't put Glass back in because it would require taking apart all the toxic stuff and close those markets. The idea was to move all the banking empire back to NYC and wipe out banks of any size in the rest of the country and get into the international game in a big way. These operations are American in name only and really only care about moving money around the world for profit. The US people are being screwed to the max. Obamas economic team is tainted from end to end with Rubin, Raines and Summers. The real point is if they force the losses, Glass wouldn't be necessary because the people that were restricted by it would be broke and the hedge funds would have little left to do but go out of business. The system needs leverage and it isn't going to get it if they put Glass back in. It is hard for them to accept that this gig is up. Hopefully the Congress, Obama or the US people are going to figure out that we can't buy ourselves to prosperity.
Posted 27 March 2009 - 06:04 AM
Agreed, with homeless children in Detroit growing while UK investors come into the city and buy up the good properties it is obvious this government has a large globalist agenda. But before you are so quick to criticize Mr. Summers remember he has plans with cap and trade to push all the pollution to the third world, so at least you can breathe a little better in the USA.
DATE: December 12, 1991
FR: Lawrence H. Summers
'Dirty' Industries: Just between you and me, shouldn't the World Bank be encouraging MORE migration of the dirty industries to the LDCs [Less Developed Countries]? I can think of three reasons:
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