Once again a Republican pundit/hatchet/surrogate was spewing tripe all over the deck. (I can’t remember his name, but I’ll never forget the smirk) This time the fishy lies that were flopping around related to deregulation. You’ve all heard their new/old ploy - it was the Democrats. Another Rove tactic - take that which is true about you and put the blame on the other person, and even when discredited, keep it up.
Below is the bait to catch these Republicans. Beyond any shadow of a doubt their fish story won’t hold up; it was their plan from beginning to end.
Place that catastrophic piece of legislative albatross around the proper neck, here’s the House and Senate voting record. As you will see the Senate Democrats held strong but the numbers were against them. However, too many of the House Democrats followed the lemming principle and followed the Republicans right into the sea. Find your Senator and House Rep if they’re still in office and you’ll know who to blame. If you’re interested there are a few snippets from the Financial Services Modernization Act of 1999 and the Federal Reserve Act. My feeling is that the bill was adopted in defiance of the Federal Reserve Act. At the very least it violated its spirit and intent.
Overview of Vote
http://www.govtrack.us/...
May 6, 1999: This bill passed in the Senate by roll call vote. The totals were 54 Ayes, 44 Nays, 2 Present/Not Voting.
Jul 20, 1999: This bill passed in the House of Representatives without objection. A
Nov 4, 1999: After passing both the Senate and House, a conference committee is created to work out differences between the Senate and House versions of the bill. A conference report resolving those differences passed in the House of Representatives, paving the way for enactment of the bill, by roll call vote. The totals were 362 Ayes, 57 Nays, 15 Present/Not Voting.
House of Representatives Overview
Ayes: 362 (83%)
Nays: 57 (13%)
No Vote: 15 (3%)
Ayes: (151 Democrats) ((210 Republicans))
Nays: (50 Democrats) ((5 Republicans))(1 Independents)
No Vote: (4 Democrats) ((10 Republicans))(1 Independents)
Required: Simple Majority of 419 votes (=210 votes)
For House Representatives individual voting record See http://www.govtrack.us/...
Senate Vote On Passage: S. 900 [106th]: Gramm-Leach-Bliley Act
Vote Number: Senate Vote #105 in 1999
Date: May 6, 1999 8:14PM
Result: Bill Passed
Related Bill: S. 900 [106th]: Gramm-Leach-Bliley Act
Overview
Totals
Ayes: 54 (54%)
Nays: 44 (44%)
Present: 1(1%)
No Vote: 1(1%)
Required: Simple Majority of 99 votes (=50 votes)
Ayes: (1 Democrat) ((52 Republicans)) (1 Independent)
Nays: (43 Democrats) ((0 Republicans)) (1 Independent)
Present: (0 Democrats) ((1 Republican)) (0 Independent)
No Vote: (0 Democrats) ((1 Republican)) (0 Independent)
Arranged by Nays then Ayes Vote
Vote State Representative
Nay HI Akaka, Daniel [D]
Nay MT Baucus, Max [D]
Nay IN Bayh, B. [D]
Nay DE Biden, Joseph [D]
Nay NM Bingaman, Jeff [D]
Nay CA Boxer, Barbara [D]
Nay LA Breaux, John [D]
Nay NV Bryan, Richard [D]
Nay WV Byrd, Robert [D]
Nay GA Cleland, J. [D]
Nay ND Conrad, Kent [D]
Nay SD Daschle, Thomas [D]
Nay CT Dodd, Christopher [D]
Nay ND Dorgan, Byron [D]
Nay IL Durbin, Richard [D]
Nay NC Edwards, John [D]
Nay WI Feingold, Russell [D]
Nay CA Feinstein, Dianne [D]
Nay FL Graham, Bob [D]
Nay IA Harkin, Thomas [D]
Nay HI Inouye, Daniel [D]
Nay SD Johnson, Tim [D]
Nay MA Kennedy, Edward [D]
Nay NE Kerrey, J. [D]
Nay MA Kerry, John [D]
Nay WI Kohl, Herbert [D]
Nay LA Landrieu, Mary [D]
Nay NJ Lautenberg, Frank [D]
Nay VT Leahy, Patrick [D]
Nay MI Levin, Carl [D]
Nay CT Lieberman, Joseph [I]
Nay AR Lincoln, Blanche [D]
Nay MD Mikulski, Barbara [D]
Nay NY Moynihan, Daniel [D]
Nay WA Murray, Patty [D]
Nay RI Reed, John [D]
Nay NV Reid, Harry [D]
Nay VA Robb, Charles [D]
Nay WV Rockefeller, John [D]
Nay MD Sarbanes, Paul [D]
Nay NY Schumer, Charles [D]
Nay NJ Torricelli, Robert [D]
Nay MN Wellstone, Paul [D]
Nay OR Wyden, Ron [D]
Ayes
Aye MI Abraham, Spencer [R]
Aye CO Allard, Wayne [R]
Aye MO Ashcroft, John [R]
Aye UT Bennett, Robert [R]
Aye MO Bond, Christopher [R]
Aye KS Brownback, Samuel [R]
Aye KY Bunning, Jim [R]
Aye MT Burns, Conrad [R]
Aye CO Campbell, Ben [R]
Aye RI Chafee, John [R]
Aye MS Cochran, Thad [R]
Aye ME Collins, Susan [R]
Aye GA Coverdell, Paul [R]
Aye ID Craig, Larry [R]
Aye ID Crapo, Michael [R]
Aye OH DeWine, Michael [R]
Aye NM Domenici, Pete [R]
Aye WY Enzi, Michael [R]
Aye TN Frist, William [R]
Aye WA Gorton, T. [R]
Aye TX Gramm, Phil [R]
Aye MN Grams, Rod [R]
Aye IA Grassley, Charles [R]
Aye NH Gregg, Judd [R]
Aye NE Hagel, Charles [R]
Aye UT Hatch, Orrin [R]
Aye NC Helms, Jesse [R]
Aye SC Hollings, Ernest [D]
Aye AR Hutchinson, Tim [R]
Aye TX Hutchison, Kay [R]
Aye VT Jeffords, James [I]
Aye AZ Kyl, Jon [R]
Aye MS Lott, Trent [R]
Aye IN Lugar, Richard [R]
Aye FL Mack, Connie [R]
Aye AZ McCain, John [R]
Aye KY McConnell, Mitch [R]
Aye AK Murkowski, Frank [R]
Aye OK Nickles, Don [R]
Aye KS Roberts, Pat [R]
Aye DE Roth, William [R]
Aye PA Santorum, Richard [R]
Aye AL Sessions, Jefferson [R]
Aye AL Shelby, Richard [R]
Aye NH Smith, Bob [R]
Aye OR Smith, Gordon [R]
Aye ME Snowe, Olympia [R]
Aye PA Specter, Arlen [R]
Aye AK Stevens, Ted [R]
Aye WY Thomas, Craig [R]
Aye TN Thompson, Fred [R]
Aye SC Thurmond, J. [R]
Aye OH Voinovich, George [R]
Aye VA Warner, John [R]
No Vote OK Inhofe, James [R]
Present IL Fitzgerald, Peter [R]
Votes Arranged by State
Vote State Representative
Alabama
Aye AL Sessions, Jefferson [R]
Aye AL Shelby, Richard [R]
Alaska
Aye AK Murkowski, Frank [R]
Aye AK Stevens, Ted [R]
Arizona
Aye AZ Kyl, Jon [R]
Aye AZ McCain, John [R]
Arkansas
Aye AR Hutchinson, Tim [R]
Nay AR Lincoln, Blanche [D]
California
Nay CA Boxer, Barbara [D]
Nay CA Feinstein, Dianne [D]
Colorado
Aye CO Allard, Wayne [R]
Aye CO Campbell, Ben [R]
Connecticut
Nay CT Dodd, Christopher [D]
Nay CT Lieberman, Joseph [I]
Delaware
Aye DE Roth, William [?]
Nay DE Biden, Joseph [D]
Florida
Aye FL Mack, Connie [?]
Nay FL Graham, Bob [D]
Georgia
Aye GA Coverdell, Paul [?]
Nay GA Cleland, J. [D]
Hawaii
Nay HI Akaka, Daniel [D]
Nay HI Inouye, Daniel [D]
Idaho
Aye ID Craig, Larry [R]
Aye ID Crapo, Michael [R]
Illinois
Nay IL Durbin, Richard [D]
Present IL Fitzgerald, Peter [R]
Indiana
Aye IN Lugar, Richard [R]
Nay IN Bayh, B. [D]
Iowa
Aye IA Grassley, Charles [R]
Nay IA Harkin, Thomas [D]
Kansas
Aye KS Brownback, Samuel [R]
Aye KS Roberts, Pat [R]
Kentucky
Aye KY Bunning, Jim [R]
Aye KY McConnell, Mitch [R]
Louisiana
Nay LA Breaux, John [D]
Nay LA Landrieu, Mary [D]
Maine
Aye ME Collins, Susan [R]
Aye ME Snowe, Olympia [R]
Maryland
Nay MD Mikulski, Barbara [D]
Nay MD Sarbanes, Paul [D]
Massachusetts
Nay MA Kennedy, Edward [D]
Nay MA Kerry, John [D]
Michigan
Aye MI Abraham, Spencer [?]
Nay MI Levin, Carl [D]
Minnesota
Aye MN Grams, Rod [?]
Nay MN Wellstone, Paul [D]
Mississippi
Aye MS Cochran, Thad [R]
Aye MS Lott, Trent [R]
Missouri
Aye MO Ashcroft, John [?]
Aye MO Bond, Christopher [R]
Montana
Aye MT Burns, Conrad [R]
Nay MT Baucus, Max [D]
Nebraska
Aye NE Hagel, Charles [R]
Nay NE Kerrey, J. [D]
Nevada
Nay NV Bryan, Richard [?]
Nay NV Reid, Harry [D]
New Hampshire
Aye NH Gregg, Judd [R]
Aye NH Smith, Bob [R]
New Jersey
Nay NJ Lautenberg, Frank [D]
Nay NJ Torricelli, Robert [D]
New Mexico
Aye NM Domenici, Pete [R]
Nay NM Bingaman, Jeff [D]
New York
Nay NY Moynihan, Daniel [D]
Nay NY Schumer, Charles [D]
North Carolina
Aye NC Helms, Jesse [R]
Nay NC Edwards, John [D]
North Dakota
Nay ND Conrad, Kent [D]
Nay ND Dorgan, Byron [D]
Ohio
Aye OH DeWine, Michael [R]
Aye OH Voinovich, George [R]
Oklahoma
Aye OK Nickles, Don [R]
No VoteOK Inhofe, James [R]
Oregon
Aye OR Smith, Gordon [R]
Nay OR Wyden, Ron [D]
Pennsylvania
Aye PA Santorum, Richard [R]
Aye PA Specter, Arlen [R]
Rhode Island
Aye RI Chafee, John [?]
Nay RI Reed, John [D]
South Carolina
Aye SC Hollings, Ernest [D]
Aye SC Thurmond, J. [R]
South Dakota
Nay SD Daschle, Thomas [D]
Nay SD Johnson, Tim [D]
Tennessee
Aye TN Frist, William [R]
Aye TN Thompson, Fred [R]
Texas
Aye TX Gramm, Phil [R]
Aye TX Hutchison, Kay [R]
Utah
Aye UT Bennett, Robert [R]
Aye UT Hatch, Orrin [R]
Vermont
Aye VT Jeffords, James [I]
Nay VT Leahy, Patrick [D]
Virginia
Aye VA Warner, John [R]
Nay VA Robb, Charles [?]
Washington
Aye WA Gorton, T. [?]
Nay WA Murray, Patty [D]
West Virginia
Nay WV Byrd, Robert [D]
Nay WV Rockefeller, John [D]
Wisconsin
Nay WI Feingold, Russell [D]
Nay WI Kohl, Herbert [D]
Wyoming
Aye WY Enzi, Michael [R]
Aye WY Thomas, Craig [R]
http://www.govtrack.us/...
Financial Services Modernization Act of 1999
The following summary was written by the Congressional Research Service, a well-respected nonpartisan arm of the Library of Congress. GovTrack did not write and has no control over these summaries.
Title I - Facilitating Affiliation Among Banks, Securities Firms, and Insurance Companies
Subtitle A - Affiliations
Amends the Banking Act of 1933 (Glass-Steagall Act) to repeal prohibitions: (1) against affiliation of any Federal Reserve member bank with an entity engaged principally in securities activities (securities affiliate); and (2) against simultaneous service by any officer, director, or employee of a securities firm as an officer, director, or employee of any member bank (interlocking directorates).
Section 103 -
Amends the Bank Holding Company Act of 1956 (BHCA) to permit a financial holding company (FHC) to engage in any activity or to acquire the shares of any company whose activities have been determined by the Board of Governors of the Federal Reserve System (the Board), after mandatory consultation with the Secretary of the Treasury (Secretary), to be either financial in nature, or incidental or complementary to financial activities without posing a substantial risk to the safety and soundness of depository institutions, or of the financial system generally. Prescribes consultation and coordination guidelines. Permits the Board and the Secretary to authorize financial subsidiaries of banks to engage in merchant banking.
Section 104
Prohibits State regulation of the insurance activities of an insured depository institution or its affiliate that in any way discriminates adversely between insured depository institutions and other entities engaged in insurance activities.
Subtitle B - Streamlining Supervision of Financial Holding Companies
Prohibits the Board from imposing any capital or capital adequacy criteria upon a BHC subsidiary that is not an insured depository institution, and is: (1) in compliance with State or Federal capitalization rules; (2) registered under the Investment Advisers Act of 1940; or (3) licensed as an insurance agent in the State. Prohibits the Board, when developing capital adequacy requirements, from taking into consideration any affiliated investment company which is neither a BHC, nor controlled by one holding 25 percent or more shares of the investment company worth more than $1 million.
After you read through the summary of the Financial Services Modernization Act of 1999 (Gramm-Leach-Bliley) the reasons for the excesses of market fundamentalism and the current financial crisis are remarkably apparent. However, I would not call the bill deregulation because it does much more than deregulate. It changes the regulations and, as far as I can determine, then limits the Federal Reserve’s ability to enforce the spirit and intent of the Federal Reserve Act. The preponderance of the phrase "Prohibits the Board" throughout much of the bill makes the intent of the Financial Services Modernization Act of 1999 (Gramm-Leach-Bliley) absolutely clear. It’s open season on ducks and we’re the sitting ducks. There’s no limit, no gun limit, no shot limit
To the ability that I am able to understand the convoluted text, the bill is in direct contradiction to the Mission of the Federal Reserve and the Federal Reserve Act.
Monetary Policy Objectives of The Federal Reserve’s Board of Governors of the Federal Reserve System and the Federal Open Market Committee state that it "shall maintain long run growth of the monetary and credit aggregates commensurate with the economy's long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates." That’s general enough to apply a wide range of actions; nonetheless, the system failed.
However, the Federal Reserve’s mission states more specifically:
http://www.federalreserve.gov/aboutthefed/mission.htm
The Federal Reserve System is the central bank of the United States. It was founded by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role in banking and the economy has expanded.
Today, the Federal Reserve's duties fall into four general areas:
* conducting the nation's monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates
* supervising and regulating banking institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers
* maintaining the stability of the financial system and containing systemic risk that may arise in financial markets
* providing financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation's payments system
Clearly, the Financial Services Modernization Act of 1999, made that mission nearly impossible. The hounds were let loose in the meat packing plant and it wasn’t a pretty sight. Citing just one Section of the Federal Reserve seems to place the Financial Services Modernization Act of 1999 at odds with the Act.
http://www.federalreserve.gov/...
Federal Reserve Act
Section 23. Interbank Liabilities *
(a) The purpose of this section is to limit the risks that the failure of a large depository institution (whether or not that institution is an insured depository institution) would pose to insured depository institutions.
Aggregate Limits on Insured Depository Institutions' Exposure to Other Depository Institutions
(b) The Board shall, by regulation or order, prescribe standards that have the effect of limiting the risks posed by an insured depository institution's exposure to any other depository institution.
The Gramm-Leach-Bliley bill limited the Federal Reserve’s ability to regulate because it was prohibited in many areas from taking action. And when you put a very reluctant Federal Reserve in charge of already weakened and prohibiting regulations, you can expect that no one is going to be regulating; they’ll only be watching - and possibly applauding.