HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » Five times as big. Five ... » Reply #39

Response to TrollBuster9090 (Reply #27)

Tue Apr 1, 2014, 06:16 PM

39. + 1,000. Phil Gramm is one of the biggest pieces of shit walking.

From Octafish, 2008:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4055207

Foreclosure Phil

Years before Phil Gramm was a McCain campaign adviser and a lobbyist for a Swiss bank at the center of the housing credit crisis, he pulled a sly maneuver in the Senate that helped create today's subprime meltdown.


David Corn
MotherJones.com
May 28, 2008

Who's to blame for the biggest financial catastrophe of our time? There are plenty of culprits, but one candidate for lead perp is former Sen. Phil Gramm. Eight years ago, as part of a decades-long anti-regulatory crusade, Gramm pulled a sly legislative maneuver that greased the way to the multibillion-dollar subprime meltdown. Yet has Gramm been banished from the corridors of power? Reviled as the villain who bankrupted Middle America? Hardly. Now a well-paid executive at a Swiss bank, Gramm cochairs Sen. John McCain's presidential campaign and advises the Republican candidate on economic matters. He's been mentioned as a possible Treasury secretary should McCain win. That's right: A guy who helped screw up the global financial system could end up in charge of US economic policy. Talk about a market failure.

Gramm's long been a handmaiden to Big Finance. In the 1990s, as chairman of the Senate banking committee, he routinely turned down Securities and Exchange Commission chairman Arthur Levitt's requests for more money to police Wall Street; during this period, the sec's workload shot up 80 percent, but its staff grew only 20 percent. Gramm also opposed an sec rule that would have prohibited accounting firms from getting too close to the companies they audited—at one point, according to Levitt's memoir, he warned the sec chairman that if the commission adopted the rule, its funding would be cut. And in 1999, Gramm pushed through a historic banking deregulation bill that decimated Depression-era firewalls between commercial banks, investment banks, insurance companies, and securities firms—setting off a wave of merger mania.

But Gramm's most cunning coup on behalf of his friends in the financial services industry—friends who gave him millions over his 24-year congressional career—came on December 15, 2000. It was an especially tense time in Washington. Only two days earlier, the Supreme Court had issued its decision on Bush v. Gore. President Bill Clinton and the Republican-controlled Congress were locked in a budget showdown. It was the perfect moment for a wily senator to game the system. As Congress and the White House were hurriedly hammering out a $384-billion omnibus spending bill, Gramm slipped in a 262-page measure called the Commodity Futures Modernization Act. Written with the help of financial industry lobbyists and cosponsored by Senator Richard Lugar (R-Ind.), the chairman of the agriculture committee, the measure had been considered dead—even by Gramm. Few lawmakers had either the opportunity or inclination to read the version of the bill Gramm inserted. "Nobody in either chamber had any knowledge of what was going on or what was in it," says a congressional aide familiar with the bill's history.

It's not exactly like Gramm hid his handiwork—far from it. The balding and bespectacled Texan strode onto the Senate floor to hail the act's inclusion into the must-pass budget package. But only an expert, or a lobbyist, could have followed what Gramm was saying. The act, he declared, would ensure that neither the sec nor the Commodity Futures Trading Commission (cftc) got into the business of regulating newfangled financial products called swaps—and would thus "protect financial institutions from overregulation" and "position our financial services industries to be world leaders into the new century."

Subprime 1-2-3

Don't understand credit default swaps? Don't worry—neither does Congress. Herewith, a step-by-step outline of the subprime risk betting game. —Casey Miner

CONTINUED…

http://www.motherjones.com/politics/2008/05/foreclosure-phil

Reply to this post

Back to OP Alert abuse Link to post in-thread

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 42 replies Author Time Post
Scuba Mar 2014 OP
Oscarmonster13 Mar 2014 #1
Auntie Bush Mar 2014 #3
Journeyman Mar 2014 #4
Scuba Apr 2014 #10
Enthusiast Apr 2014 #11
LuvNewcastle Apr 2014 #14
a kennedy Apr 2014 #16
Gidney N Cloyd Apr 2014 #21
allan01 Apr 2014 #25
Scuba Apr 2014 #26
Chellee Apr 2014 #31
treestar Apr 2014 #18
joeglow3 Apr 2014 #30
Mosby Apr 2014 #32
hue Apr 2014 #33
niyad Mar 2014 #2
99Forever Mar 2014 #5
NBachers Mar 2014 #6
JohnnyRingo Apr 2014 #7
Recursion Apr 2014 #8
JayhawkSD Apr 2014 #9
demwing Apr 2014 #15
JayhawkSD Apr 2014 #28
demwing Apr 2014 #29
JayhawkSD Apr 2014 #38
hue Apr 2014 #34
Enthusiast Apr 2014 #12
DiverDave Apr 2014 #13
Doctor_J Apr 2014 #17
CFLDem Apr 2014 #19
SomethingFishy Apr 2014 #20
DesertDiamond Apr 2014 #22
freebrew Apr 2014 #23
allan01 Apr 2014 #24
TrollBuster9090 Apr 2014 #27
LineLineNew Reply + 1,000. Phil Gramm is one of the biggest pieces of shit walking.
HughBeaumont Apr 2014 #39
TrollBuster9090 Apr 2014 #41
SunSeeker Apr 2014 #35
GoneFishin Apr 2014 #36
3catwoman3 Apr 2014 #37
bigwillq Apr 2014 #40
blkmusclmachine Apr 2014 #42
Please login to view edit histories.