[Vision2020] Bill Clinton Signing the Financial Services Modernization Act in 1999

[Ted Moffett]

I should have mentioned the picture was sourced from the article in the
other post today, subject headed "Legacy of the Clinton Bubble..."

http://www.dissentmagazine.org/article/?article=1229
-------------
It can be debated how much in agreement President Clinton was with all the
deregulatory provisions that he signed into law that contributed to the
financial crisis we are currently experiencing.  If he really objected to
these provisions vehemently, he could have vetoed the bills, even if facing
an override.  Clinton vetoed numerous bills in 1999 and 2000, the years he
signed into law two bills that were crucial to deregulating the US financial
system.

I think Clinton wanted to be a new kind of Democrat, a progressive but very
pro free trade and pro Wall Street leader, with free markets and trade
compatible with his more liberal agenda on some issues.

Considering Clinton asked former Federal Reserve chairman Allan Greenspan to
remain as chair, when he could have pushed for someone more regulatory
oriented, given Greenspan's laissez faire economic theories, Clinton's push
for the free trade agreement NAFTA, and his approval of China entering the
WTO, suggests that Clinton did buy into the general approach of more
deregulation of financial markets and trade:

http://www.ieeeits.org/allnews/clinton-renominates-greenspan-as-fed-chairman.htm

*Clinton praised Greenspan for his “sophisticated analysis and old-fashioned
common sense.”*

*“Clearly wise leadership from the Fed has played a very large role in our
economy,” Clinton said.*

*Greenspan thanked Clinton for his confidence, and, straying from the
nonpartisan reticence that typically characterizes his public
pronouncements, said Clinton’s “economic policy staff has been exceptional
in my view.”*
-------

Greenspan complimenting Clinton's "economic policy staff" reveals how much
Clinton was on the side of the laissez faire orientation to financial
systems, assuming that Greenspan meant that Clinton's staff were oriented
towards Greenspan's more laissez faire approach, and Greenspan knew what he
talking about...

What is amazing is Greenspan's recent admission that aspects of his economic
theory were in error:

http://www.businessinsider.com/henry-blodget-greenspans-fatal-flaw-a-desperate-need-to-be-liked-2009-3

*Alan Greenspan had a brief moment when he seemed capable of being redeemed,
when he admitted before Congress that he was wrong about his assumptions
that firms could regulate themselves. I have yet to see another central
figure in the banking meltdown admit error.*
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Vision2020 Post: Ted Moffett



On 4/18/09, bear at moscow.com <bear at moscow.com> wrote:
>
> Ted,
>
> The picture is good, but doesn't mention the history of the legislation!
>
> The Gramm-Leach-Bliley Act, also known as the Gramm-Leach-Bliley Financial
> Services
> Modernization Act, Pub.L. 106-102, 113 Stat. 1338 introduced in the U.S.
> Senate by Phil
> Gramm (R-Texas) and in the U.S. House of Representatives by Jim Leach
> (R-Iowa). The third
> lawmaker associated with the bill was Rep. Thomas J. Bliley, Jr.
> (R-Virginia), Chairman of
> the
> House Commerce Committee from 1995 to 2001. On May 6, 1999, the Senate
> passed the bills
> by a 54-44 vote along party lines (53 Republicans and one Democrat in
> favor; 44 Democrats
> opposed). On July 20, the House passed a different version of the bill on
> an uncontested
> and
> uncounted voice vote. When the two chambers could not agree on a joint
> version of the
> bill, the
> House voted on July 30 by a vote of 241-132 (R 58-131; D 182-1) to instruct
> its
> negotiators to
> work for a law which ensured that consumers enjoyed medical and financial
> privacy as well
> as
> "robust competition and equal and non-discriminatory access to financial
> services and
> economic opportunities in their communities" (i.e., protection against
> exclusionary
> redlining)
> The bill then moved to a joint conference committee to work out the
> differences between
> the
> Senate and House versions. Democrats agreed to support the bill after
> Republicans agreed
> to
> strengthen provisions of the anti-redlining Community Reinvestment Act and
> address certain
>
> privacy concerns; the conference committee then finished its work by the
> beginning of
> November. On November 4, the final bill resolving the differences was
> passed by the Senate
>
> 90-8  and by the House 362-57. This legislation was signed into law by
> Democratic
> President
> Bill Clinton on November 12, 1999.
>
> So now Bill Clinton is to blame for a REPUBLICAN finance bill?




>
> > President Bill Clinton, cozying up to Wall Street:
> > Photo: Justin Lane/The *New York Times*/Redux
>
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