 sillysam says: Indeed, exactly contrary to Obama’s claims, the repeal of Glass-Steagall has helped to counter the current crisis. It allowed Bank of America to buy out Merrill Lynch, JP Morgan Chase to buy out Bear Stearns, and Barclays Bank to work on buying up the remains of Lehman Brothers. It allowed investment banks Goldman Sachs and Morgan Stanley to take up refuge as bank holding companies. If investment banks Bear Stearns and Lehman Brothers had diversified more into commercial banking, taking commercial deposits — as the Act’s repeal made possible — that might have provided them with the superior capital cushions needed to survive. More recently, Obama has attacked McCain on deregulation by saying, “Senator McCain wrote that we need to open up health care to ‘more vigorous nationwide competition as we have done over the last decade in banking.’ That’s right, he wants to deregulate the insurance industry just like he fought to deregulate the banking industry. And we’ve all seen how well that worked out.” Obama is talking here about the deregulation to allow interstate banking, which McCain referenced in proposing interstate sales of health insurance. But the analogy actually supports McCain’s position: Interstate banking has been an unqualified success, strengthening banks and providing more competition and services fo... |
View the Top Clips from October 15, 2008
Embed This Clip In Your Site...
|
|
|
|
|
New from the makers of Clipmarks: Amplify.com - Don't just share the news...Amplify it!
|
|
