3 ms·
The removal of a regulation is quite different from co-opting the government to do the industry's bidding. In 1993, the Clinton administration repealed the Gla
by cawel 15y ago
The removal of a regulation is quite different from co-opting the government to do the industry's bidding.
In 1993, the Clinton administration repealed the Glass-Steagall Act under pressure from Wall Street because Clinton wanted to secure Wall Street's financial support for his coming reelection. Wall Street money effectively contributed to shape the financial system in Wall Street's favor, that is, towards less financial regulation.
With this perspective, I see the removal of the Glass-Steagall Act regulation as an example of co-optation.
- SkyMarshal 15y agoMinor correction, Glass-Steagall was repealed in 1999 by the Graham-Leech-Bliley Act. (It was originally signed into law in 1933, which might be where your 3 is coming from...). http://en.wikipedia.org/wiki/Glass-Steagall_Act http://en.wikipedia.org/wiki/Glass-Steagall_Act But otherwise, yes Clinton signed it ostensibly for the reasons you mention (needed Wall St. campaign funds for Dems), but it was led by Sen. Phil Graham, poster boy for the revolving-door between Wall St. & Washington (and now on the board of UBS).
- cawel 15y agoI stand corrected. 1999 it is. Thanks for caring about historical accuracy.