The Slug

Let's revisit Phil Gramm.

Many economist believe that the 1999 legislation spearheaded by Gramm and signed into law by President Clinton — the Gramm-Leach-Biley Act -was significantly to blame for the 2007 subprime mortgage crisis and 2008 global economic crisis. The Act is most widely known for repealing portions of the Glass-Steagall Act, which had regulated the financial services industry. The Act passed the House and Senate by an overwhelming majority.

Gramm responded in 2008 to criticism of the act by stating that he saw "no evidence whatsoever" that the sub-prime mortgage crisis was caused in any way "by allowing banks and securities companies and insurance companies to compete against each other." Case study #1: The S&L crisis, following industry deregulation, costing Americans $500 billion by 1992.  Case study #2: the collapse of the financial system, following industry deregulation.

Gramm's support was later critical in the passage of the Commodity Futures Modernisation Act of 2000, which kept derivatives transactions, including those involving credit default swaps, free of government regulation.

In its 2008 coverage of the financial crisis, The Washington Post named Gramm one of seven "Key Players In the Battle Over Regulating Derivatives", for having "[p]ushed through several major bills to deregulate the banking and investment industries, including the 1999 Gramm-Leach-Bliley act that brought down the walls separating the commercial banking, investment and insurance industries".

In October 2008, CNN ranked Gramm number seven in its list of the 10 individuals most responsible for the current economic crisis. In January 2009 Guardian City editor Julia Finch identified Gramm as one of twenty-five people at the heart of the financial meltdown. Time included Gramm in its list of the top 25 people to blame for the economic crisis. (Wiki)