*its true. Clinton signed the deregulation into law when he was president and republicans held the majority in Congress. You can bet your booty that Rubin, Summers and Greenspan coached Clinton along. Does anyone forget DOMA? Plenty of blame has been available to go around. I believe that these five individuals hold the majority of it. Democrats wanted to continue the technology and housing booms under Clintons reign, and republicans wanted the ability to deregulate even further. And Dodd, who replaced Gramm when Democrats took back the majority, is to blame for allowing investment banks like Bear Stearns, to leverage themselves 30 to 1because they were crying that they couldn't compete.
U.S. regulators might push banks from riskier businesses
Repeal of the Glass-Steagall Act, which until about a decade ago kept everyday commercial banks separated from investment banks and other securities firms, is widely blamed for the financial meltdown. U.S. regulators seem prepared to bring back some of the old rules in some form. Sanford C. Bernstein & Co. analyst Brad Hintz, a former chief financial officer at Lehman Brothers, predicted that hedge funds will eventually take over distressed-asset and emerging-market investment from banks. Bloomberg (10 Mar.)