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Just part of Glass-Steagall was changed and it dealt with

Posted on: August 5, 2016 at 15:27:31 CT
Alferd Packer MU
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prohibition of ownership of commercial banks and investment banks. The two types couldn't be under the same ownership. That was to protect the commercial banks from the higher risk of investment banks. The common ownership restriction was lifted but they still could not blend their business activity. Although the left claims "repealing" Glass-Steagall caused the crash it really had nothing to do with it.
Changes to the Community Reinvestment Act gave regulators power over lenders to restrict their business activity if they didn't meet quotas of high-risk loans to "poor people" in targeted neighborhoods. For example, if a bank applied to open a new branch location, regulators would examine its loan/mortgage portfolio to see if it met the desired level of CRA loans. If not they could deny approval of the new branch. We can go into how this led to derivatives with federal encouragement, Fannie Mae, Freddy Mac, etc but I don't feel like it right now. TMI for a single TB post. Suffice it to say that the result was from Democrat policies to make more homeowners of people that could not in reality afford it.
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What did Obama do that was any different Than George - Ray-tiger MU - 8/5 14:28:37
     Obama doesn't think he's helping the country. He thinks the - Brazil Nut USA - 8/5 14:46:07
     oboma is NOT a trueAmerican. nm - yy4u MU - 8/5 14:31:40
     Well, the economy isn't hemorraging 800,000 jobs/month - SparkyStalcup MU - 8/5 14:30:28
          Weakest recovery since WWII ended. - Alferd Packer MU - 8/5 14:46:00
               2008 saw the only financial crisis since WW2. nm - SparkyStalcup MU - 8/5 14:52:38
                    caused by your party(nm) - Butcher of Bakersfield STL - 8/5 15:44:23
                    1980 was much worse. - Alferd Packer MU - 8/5 14:59:36
                         No, it wasn't much worse. Inflation was worse, which Carter - SparkyStalcup MU - 8/5 15:01:57
                              Wrong. Reagan Succeeded Where Obama Failed - Alferd Packer MU - 8/5 15:50:02
                    Lol no. (nm) - TigerMatt MU - 8/5 14:56:15
          Actually the economy was really booming when GWB was - JeffB MU - 8/5 14:33:48
               Yeah the houseing market and the rest of the economy - Ray-tiger MU - 8/5 14:38:50
               Yes, Clinton left him a booming economy - SparkyStalcup MU - 8/5 14:36:14
                    It was the Republican controlled Congress that left a - Alferd Packer MU - 8/5 15:02:19
                    I'm not a fan of much of what GWB did, but the roots of the - JeffB MU - 8/5 14:42:32
                         Yeah, it's common revisionist history to use the - SparkyStalcup MU - 8/5 14:50:48
                              The CRA was revised in 1995. - Alferd Packer MU - 8/5 16:08:39
                              The MAIN culprit, however, then as now, is the Fed & other - JeffB MU - 8/5 16:02:44
                              No, that isn't what I was talking about. Here are a few - JeffB MU - 8/5 15:28:47
                              Here's an interesting summary... - bornoncampus MU - 8/5 14:52:32
                                   Citigroup had to be bailed out 3 times - SparkyStalcup MU - 8/5 14:59:49
                                        Just part of Glass-Steagall was changed and it dealt with - Alferd Packer MU - 8/5 15:27:31
          The economy sucks it. - Evenflow MU - 8/5 14:32:26
          Got any idea why? - GA Tiger MU - 8/5 14:31:50




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