Sunday, October 30, 2011

How Deregulation Fueled the Financial Crisis :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website

How Deregulation Fueled the Financial Crisis :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website: "Just how did we get here?

Wall Street bankers, their exorbitantly well-paid lobbying army of former congressmen and former regulators, their greatly contributed-to sitting legislators and, most egregiously, the self-righteous and still mega-rich “former” Street executives have systematically eviscerated the muscle and bones from the regulatory bodies charged with protecting us from banks' self-destructive greed. An inordinately powerful group of executive insiders from the once-deeply respected House of Goldman Sachs ( GS ) have served as U.S. Treasury secretaries and in innumerable other administrative capacities.

A Reflection on Reform

The Depository Institutions Deregulation and Monetary Control Act of 1980 , signed into law by President Jimmy Carter , was the first major reform of the U.S. banking system since the Great Depression.

While touted as a boon to consumers, the law was actually a gold mine for bankers. Among other requirements and banker “gifts” the 1980 Act's provisions:"

'via Blog this'

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