In the "You Just Can't Make This Stuff Up" department....

Junkdrawer

(1000+ posts) Send PM | Profile | Ignore

Tue Mar-17-09 06:33 PM
Original message

In the "You Just Can't Make This Stuff Up" department....

...

So what do we do now? In 2000, the 106th Congress as its final effort passed the Commodity Futures Modernization Act (CFMA), and, disgracefully, President Clinton signed it. It opened up the bucket-shop loophole that capsized the world's economic system. With the stroke of a presidential pen, a century of valuable protection was lost.

Even with that, the dangerous swaps still almost found themselves subjected to state oversight. In 2000, AIG asked the New York State Insurance Department to decide if it wanted to regulate them, but the department's superintendent, Neil Levin, said no. The question was not posed by AIGFP, but by the company's main office through its general counsel, a reminder that not long ago, AIG was a blue chip with a triple-A rating that touted its integrity.

We can't know why Levin rejected the chance to regulate the tricky trade. He died in the restaurant at the top of the World Trade Center on the morning of 9/11. A Pataki-appointed former Goldman Sachs vice president, Levin may have shared other Wall Streeters' love of derivatives as the last big-money sure thing as the IPO craze wound down. Or maybe he saw swaps as gambling rather than insurance, hence beyond his jurisdiction. Regardless, current Insurance Superintendent Eric Dinallo told me, "I don't agree with his answer." Maybe the economic crisis could have been averted if Levin had answered otherwise. "How close we came . . ." Dinallo mused.

....
http://www.villagevoice.com/content/printVersion/850296

Printer Friendly | Permalink | | Top

elleng

(1000+ posts) Send PM | Profile | Ignore

Tue Mar-17-09 07:13 PM
Response to Original message

1. MUST READ article at link:

'Who cooked the world's economy? It wasn't your mortgage.'

Learn ALL ABOUT IT.

Printer Friendly | Permalink | | Top

Junkdrawer

(1000+ posts) Send PM | Profile | Ignore

Tue Mar-17-09 07:21 PM
Response to Reply #1

6. It's a GREAT article....Here's the DU thread...

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=5271512&mesg_id=5275383

When I read the strange 9/11 connection, it just gave me pause...

Printer Friendly | Permalink | | Top

elleng

(1000+ posts) Send PM | Profile | Ignore

Tue Mar-17-09 07:46 PM
Response to Reply #6

7. Thanks, Junk.

Printer Friendly | Permalink | | Top

Laelth

(1000+ posts) Send PM | Profile | Ignore

Tue Mar-17-09 07:14 PM
Response to Original message

2. I shall add this to the list of ways in which Clinton stabbed the left in the back.

Abolished AFDC and gave us nearly-useless TANF,
Telecommunications Act of 1996,
Repeal of Glass-Steagall in 1999,

and now ...

the Commodity Futures Modernization Act (CFMA).

Clinton was the best Republican President since Eisenhower (but, admittedly, he was better than the alternatives offered up by the R Party).

:dem:

-Laelth

Printer Friendly | Permalink | | Top

ColbertWatcher

(1000+ posts) Send PM | Profile | Ignore

Tue Mar-17-09 07:18 PM
Response to Original message

3. How far back in history will the GOP reach to find someone to blame?

Fine, Clinton signed the CFMA. Did Ken Lay need it to lie to his investors? Did Madoff need it to lie to his investors? What about Arthur Anderson and WorldCom? The laws will never be able to stay ahead of the sociopaths who will simply lie to get more money.

Printer Friendly | Permalink | | Top

elleng

(1000+ posts) Send PM | Profile | Ignore

Tue Mar-17-09 07:59 PM
Response to Reply #3

8. The laws CAN stay ahead,

IF they are enforced. 'Deregulation' regimes won't do it.

Printer Friendly | Permalink | | Top

ColbertWatcher

(1000+ posts) Send PM | Profile | Ignore

Wed Mar-18-09 12:24 AM
Response to Reply #8

10. I agree enforcement can stay ahead, but the criminals are always finding ways ...

... to break the law.

Printer Friendly | Permalink | | Top

elleng

(1000+ posts) Send PM | Profile | Ignore

Wed Mar-18-09 12:39 AM
Response to Reply #10

11. Yes, they are!

That's what criminals do! Keeps them employed! (and then housed!)

Printer Friendly | Permalink | | Top

REACTIVATED IN CT

(1000+ posts) Send PM | Profile | Ignore

Wed Mar-18-09 01:21 PM
Response to Reply #3

12. Even if Clinton had vetoed it, the Repuke Congress would

have overridden his veto.

Printer Friendly | Permalink | | Top

Laelth

(1000+ posts) Send PM | Profile | Ignore

Tue Mar-17-09 07:19 PM
Response to Original message

4. And let me add ...

The repeal of Glass-Steagall had a tremendous impact and greatly helped cause the mess we are in.

See here: http://en.wikipedia.org/wiki/Glass-Steagall_Act#Repeal_of_the_Act

:dem:

-Laelth

Printer Friendly | Permalink | | Top

G_j

(1000+ posts) Send PM | Profile | Ignore

Tue Mar-17-09 07:20 PM
Response to Original message

5. Great article

the V. Voice still has good reading.

Printer Friendly | Permalink | | Top

malaise

(1000+ posts) Send PM | Profile | Ignore

Tue Mar-17-09 08:05 PM
Response to Original message

9. Get this to the Greatest page

Superb article.

Thanks.

Printer Friendly | Permalink | | Top

DU AdBot (1000+ posts)

Fri May 03rd 2024, 05:53 PM
Response to Original message

Advertisements [?]

Top

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.