Bush admin were warned about sub prime and failed to act

[ame="http://justplainpolitics.com/showthread.php?t=14742"]SEC admitts lack of oversight help create the problem - Just Plain Politics![/ame]



S.E.C. Concedes Oversight Flaws Fueled Collapse
Sign In to E-Mail or Save This



By STEPHEN LABATON
Published: September 26, 2008
WASHINGTON — The chairman of the Securities and Exchange Commission, a longtime proponent of deregulation, acknowledged on Friday that failures in a voluntary supervision program for Wall Street’s largest investment banks had contributed to the global financial crisis, and he abruptly shut the program down.

The S.E.C.’s oversight responsibilities will largely shift to the Federal Reserve, though the commission will continue to oversee the brokerage units of investment banks.

Also Friday, the S.E.C.’s inspector general released a report strongly criticizing the agency’s performance in monitoring Bear Stearns before it collapsed in March. Christopher Cox, the commission chairman, said he agreed that the oversight program was “fundamentally flawed from the beginning.”

“The last six months have made it abundantly clear that voluntary regulation does not work,” he said in a statement. The program “was fundamentally flawed from the beginning, because investment banks could opt in or out of supervision voluntarily. The fact that investment bank holding companies could withdraw from this voluntary supervision at their discretion diminished the perceived mandate” of the program, and “weakened its effectiveness,” he added.
 
Obfuscate said:
When Obama doesn't get us out of Iraq I think I'll use Desh rational and blame the whole Iraq war on Obama.
Click to expand...

I believe the Iraqi government just finanlized the withdrawal this weekend. So that should occur over the next two years. I don't see Obama trying to alter that agreement.

It will be interesting to see what he does in Afghanistan if Pakistan and India heat up to the point of skirmishes or outright war.
 
http://www.sec.gov/news/press/2008/2008-230.htm


Chairman Cox made the following statement:

The last six months have made it abundantly clear that voluntary regulation does not work. When Congress passed the Gramm-Leach-Bliley Act, it created a significant regulatory gap by failing to give to the SEC or any agency the authority to regulate large investment bank holding companies, like Goldman Sachs, Morgan Stanley, Merrill Lynch, Lehman Brothers, and Bear Stearns.
 
Obfuscate said:
"I don't see that signing that bill had anything to do with the current crisis. Indeed, one of the things that has helped stabilize the current situation as much as it has is the purchase of Merrill Lynch by Bank of America, which was much smoother than it would have been if I hadn't signed that bill ... On the Glass-Steagall thing, like I said, if you could demonstrate to me that it was a mistake, I'd be glad to look at the evidence."

Bill Clinton
Click to expand...

Desh, I just want you to say Bill Clinton is wrong here.
 
Yes, Thanks. I'm glad you admitted that with your logic Bill Clinton is responsible for the current crises.
 
LOL, like I said if were not out quick and clean in Iraq I'm going to blame Obama cause it's Desh logic. LOL.
 
Then I discivered that the Bush SEC held back the broker rules in GLB act for 8 long years while this mess was created
 
"On November 4, the final bill resolving the differences was passed by the Senate 90-8,[13][note 4] and by the House 362-57.[14][note 5] The legislation was signed into law by President Bill Clinton on November 12, 1999."


"Many believe that the Act directly helped cause the 2007 subprime mortgage financial crisis. President Barack Obama has stated that GLB led to deregulation that, among other things, allowed for the creation of giant financial supermarkets that could own investment banks, commercial banks and insurance firms, something banned since the Great Depression. Its passage, critics also say, cleared the way for companies that were too big and intertwined to fail.["

"Nobel Prize-winning economist Joseph Stiglitz has also argued that the Act helped to create the crisis.[24] An article in the liberal publication The Nation asserted that the Gramm-Leach-Bliley Act was responsible for the creation of entities that took on more risk due to their being considered “too big to fail."[25] Other critics also assert that proponents and defenders of the Act espouse a form of "eliteconomics" that has, with the passage of the Act, directly precipitated the current economic recession while at the same time shifting the burden of belt-tightening measures onto the lower- and middle-income classes.[26]"

Now Desh... why don't you list those Broker rules you proclaim Bush held up....
 
evince said:
http://biz.yahoo.com/ap/081201/meltdown_ignored_warnings.html

[h=1] Bush admin were warned about sub prime and failed to act ?[/h]
Pretty much going to be a big part of his legacy.
Click to expand...


Desh, I don't understand how you can turn historical FACT upside down and get
it completely backasswards when the truth is put right in front of your face...
Do you think these videos are doctored by the news media?
​



Timeline shows Bush, McCain warning Dems of financial and housing crisis; meltdown
---------------------------------------------------------------
Barney Frank in 2005: What Housing Bubble?
Barney Frank Caught Lying About Fannie Mae
Don't Regulate Fannie Mae or Freddy Mac
 
You must log in or register to reply here.
Back
Top