dsgrue3 said:
Clinton. Bill Clinton could have easily vetoed the Financial Services Modernization Act of 1999, but he did not. This not only deregulated "big banks" but offered sub-prime mortgage rates to unqualified people in order for Clinton to bloat the housing market. When people could not afford their mortgages, the bubble burst. Welcome to the present. |
This is incorrect. Bill Clinton could note veto that bill.
Well ok he could of but it wouldn't of mattered.
The Banking Modernizations act passed with a stunning 83% vote in the house of representatives meaning any veto would be overturned.
75% of House Democrats voted for the bill. Largely because it was mostly a smart move.
Also, this didn't deregulate big banks really. All it did was let the banks merge easier... assuming said banks got good CRA reviews.
Which is why they gave more unqualified loans. Not because the bill had any new laws or lesser lending restrictions, but because to be able to merge and buy other banks, you needed to give said loans under CRA guidelines.
GBL is actually seen as part of the GFC because it allowed banks to get "Too big to fail". So really it's only a problem if you think there are banks that actually are too big to fail.
Doesn't seem that way to me though. Let those banks fail, peoples debts be wiped clean, and if you need to normalzie credit (which never even happened so whatever) then throw money out there directly or empower the smaller more intellegent banks.
