Wednesday, October 20, 2010

The Clintons and their Glass-Stegal Debacle

There needs to be hearings and TRIALS and PROSECUTIONS against the following for this derivatives mess that is affecting the US and world economies:  Bill and Hilary Clinton, Larry Summers, Robert Rubin, Fed chief Alan Greenspan,  SEC Chairman Arthur Levitt, Wall Street bankers involved, their lobbyists, Timothy Geithner (then New York Fed President), then Texas Republican,  Senator Phil Gramm, the then hedge fund Long Term Capital Management's officials and there are probably other, too.

Senator Byron Dorgan, Dem. ND, speaks unbelievably prophetic in this video here (below) which was from C-SPAN back in '99 when the Senate was going to vote on the repeal of the Glass-Stegal Act which had had, up until then, prevented commercial banks and investment banks from colluding together for profit.  Well all that changed when CLINTON, while under the hell-spell of his boss Hilary, listened to Robert Rubin and Larry Summers to REPEAL Glass-Stegal which is what led led to this present economic crisis...TODAY.  Other parties that influenced this were: Fed chief Alan Greenspan,  SEC Chairman Arthur Levitt, Wall Street bankers, their lobbyists, then New York Fed President Timothy Geithner, and our Congress then led by Texas Republican,  Senator Phil Gramm.

Many warnings were coming our way in 1998 about these toxic financial derivatives, but no one was doing anything about it.

In an article that I cite in this post from onlinejournal.com (Feb. 2010) titled "The woman who took on the titans of derivatives," it tellingly speaks of the chair for the CFTC under Clinton, Brooksley Born, whose agency had the power to regulate DERIVATIVES.  Before I continue look at what this article states about her qualifications:

"Graduating Stanford Law in the early 60s at the top of her class, she was the first female president of the prestigious Stanford Law Review. She went on to practice derivatives law for more than 20 years, learning first-hand the dangerous pitfalls and frauds possible in an unregulated derivatives market. And in Washington, she became a partner in a prestigious law firm, earning an international reputation, allying herself with other powerful female attorneys, including Hillary Clinton."

Born was passed up for Attorney General of the US for Janet Reno.

Here's what's shocking as Born a couple of years before the end of Glass-Stegal tried to speak out against the evils of toxic derivatives.  The same article also states:

"Moreover, the seemingly soft-spoken Born would end up going mano a mano with Clinton’s top three economic powerhouses, Fed chief Alan Greenspan, Treasury Secretary Robert Rubin, and Chief Economic Advisor Larry Summers, later augmented by SEC Chairman Arthur Levitt. As Michael Kirk’s script and direction clearly depict, brutal battles ensued as Born courageously attempted to regulate the dangerous derivatives, testifying even before Congress at times that her sole motive 'was to protect the money, the homes, and the jobs of the American people.' Her vision now seems not only heroic but prophetic.

Yet her aspirations nearing the millennium’s end were summarily stifled by the 'gang of three,' plus the SEC’s Levitt, Wall Street bankers, their lobbyists, then New York Fed President Timothy Geithner, and lastly our Congress, the posse led by Texas Republican, free-range market Senator Phil Gramm.

Of all, it was Greenspan, the free-market laissez-faire protégé of no less than Ayn Rand, who 'led' the economic chaos. Rubin followed, then Summers playing enforcer, and Levitt adding more clout. In a scene from an early meeting, the Rand cum Greenspan dictum would be that 'the strong would succeed, the weaker would fail, and the market would clear the balance sheet.' Rand went on to proudly proclaim that she 'was for the separation of state and economics.'"

Alan Greenspan, in his financially morbid thinking, told Born on this derivative issue, according to this same article "that outright fraud should not be regulated because the market would correct it and set all things right."

Article:


Youtube video from Informedru: Repeal of Glass Steagall, Derivatives & out of control Hedge Funds!


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