Phil Gramm, the former Republican Senator from Texas who co-wrote the act that undid Glass-Steagall, has our DQotD:

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“I’ve never seen any evidence to substantiate any claim that this current financial crisis had anything to do with Gramm-Leach-Bliley. In fact, you couldn’t have had the assisted takeovers you had. More institutions would have failed.”

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Your dumb Quote of the Day is sponsored by Cognitive Dissonance, a Nasdaq Company . . .

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Sources:
Wall Street Faces ‘Live Ammo’ as Congress Aims to Unravel Banks
Alison Vekshin and Robert Schmidt
Bloomberg, November 12 2009

http://www.bloomberg.com/apps/news?pid=20601109&sid=az7AcisnxsCA&pos=11

Category: Bailouts, Really, really bad calls, Regulation

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

22 Responses to “Gramm: Glass Steagall Repeal Irrelevant”

  1. Darkness says:

    By not putting fucktards like Gramm in jail the justice department is inviting private action and damn well better not act surprised when it happens. Just sayin’.

  2. bsneath says:

    When the history books are written, Phil Gramm will be adequately recognized for his contribution in bringing down the United States economy. (In Texas vernacular)…and there ain’t a damn thing he can do about it!

  3. alfred e says:

    Gramm is an incredibly evil person. Not stupid. Evil.

  4. sharkbait says:

    Is former Senator Gramm still at UBS? Good luck to them.

    As long as Congress is the lapdog of special interests (e.g.: FIRE, food, healthcare, et al) the American citizen will continue to get the shaft. In what is intuitively obvious to the most casual observer, the repeal of Glass-Stegall via Gramm-Leach-Bliley, and the laissez-faire Fed a la idiot Greenspan were the major contributors to the financial collapse. This can be said with certainty, and in fact can be expected to re-occur:

    http://www.bloomberg.com/apps/news?pid=newsarchive&sid=auP_f0JmKhvs
    Bailout Hasn’t Checked Wall Street’s Risk-Taking, Warren Says

    “Those who cannot remember the past are condemned to repeat it” – Geo. Santayana

  5. tsk tsk says:

    Some have posited that Bear and Lehman went down was because neither had a commercial bank backing up its assets. Bear was absorbed by JPM, a bank, and Lehman though it tried to become a bank holding company. Could that have occurred if Glass-Steagall not been previously repealed? Could Goldman have turned into a bank holding company and then receive TARP money?

    FWIW – This morning Geitner just testified to congress that he felt repealing Glass-Steagall had little to do with the crisis we currently face.

  6. tmcinerney says:

    He should be taken out in public somewhere, electrocuted, and then shot.

  7. bsneath says:

    This is yet another example that Geithner is nothing but a puppet of the industry. He is only looking out for his afterlife career at Goldman Sachs after he has paid his dues by carrying their water.

    Just as Geithner is being controlled, so can a single regulator. Case in point, What if there were no Shelia Bair to question Geithner on the issue of not providing up-front funding in the event of future TBTF bank failures? Then we would have just one opinion, Geithners. (or should I say Goldman’s)

    Geithner: Largest firms need single regulator
    REUTERS — 10:36 AM ET 11/19/09

    By David Lawder

    WASHINGTON (Reuters) – U.S. Treasury Secretary Timothy Geithner said on Thursday that no financial firm should be able to escape regulation, and the largest institutions need oversight from a single, strong regulator.

    “The regulation of the largest, most interconnected firms requires tremendous institutional capacity, clear lines of authority and single-point accountability. This is no place for regulation for council or by committee,” Geithner said in testimony to the congressional Joint Economic Committee.

  8. MikeG says:

    World-class grifters Phil and Wendy Gramm: always wrong, but never in doubt.

  9. Bobby2 says:

    What credibility does Phil Gramm still have?

  10. torrie-amos says:

    Ben and Tim HAVE TO SAY THAT, they are painted in a corner and still need the freedom to do whatever they may need to do…………So, if that idea were embraced, you can bet bills would be flying and plans made to right the wrongs because it is something every person in congress can understand, takes no thought………………Secrecy is the only thing keeping them alive……………propaganda works thru repetition and repetition only, thus, the only important things are…….”things are getting better” and the 401k’s go up each month, or not down too much…………..

    You don’t need PHD regulators, when you only have 15-1 leverage and seperation.

    The greatest trick the devil ever played was making people think he didn’t exist.

    There will always be buyers, always…………headstone of buggywhipinc founder

  11. jeffshattuck says:

    Honestly, I’m impressed. Phil Gramm is a rockstar of a politician, standing firm by his actions, being resolute in his views and not letting a little downturn in the economy convince him to change course. I mean, he is so right, had Glass not been repealed, the total collapse of the financial industry could not have been avoided, since bigger banks would not have been able to acquire non-bank financial firms. Phil Gramm deserves a statue.

    But here’e what I really want to know: when is someone going to point out that Goldman Sachs is the last independent investment bank and making money for three reasons? Those reasons are: 1) thanks to the stupendous genius of Gramm, GS was able to become a bank holding company and can now borrow money from the Fed for next to nothing and pour that money into classic investment banking activities; 2) GS’s competition has been all but eliminated or, at least, thoroughly diluted; and 3) former GS leaders are making policy decisions that seem to disproportionately benefit GS. It all demands the highly technical question: W.T.F?

    Jeff
    http://www.cerebellumblues.com

  12. davossherman@gmail.com says:

    Gramm is irrelevant.

  13. Jim Greeen says:

    I always remember with glee when Phil tried to run for the Republican Presidential nomination a few years back.

    His boot licking and fund raising he did for his fellow Republican colleagues across the country was done to garner their support when he deemed it was his turn. When he went to these supporters he was summarily abandoned by everyone like rats leaving a sinking ship. He could not garner enough supporters to start a fight.

    He was left to swing, naked and fully exposed for what he really is in the breeze.

    It was a very sweet moment and recalling his humiliation today makes me smile.

  14. FrancoisT says:

    Gramm is the living proof that wealth is, at times, totally uncorrelated with hard work.
    Unless, of course, one considers ass kissing to be hard work.

  15. Moss says:

    The twisted logic of Gramm is proof positive he has no conscience, expecting any type of rational statement from him is like expecting Bush to say Iraq was a mistake. The unintended disastrous consequence of a bad decision is somehow superseded by a subsequent action. In Bush’s case it is declaring the merits of the ‘surge’. Thus is the hallmark of the GOP politician, mistakes can never be admitted if the decision is one that is true to their core principles. WTF are they thinking?

  16. catman says:

    Texas has turned out more than its share of beauties the last few years. Gramm, DeLay, Bush… geez

  17. Marc P says:

    The comedy show continues. Somehow Gramm’s comment sounds vaguely familiar:

    “I’ve never seen any evidence to substantiate any claim that this current financial crisis had anything to do with Gramm-Leach-Bliley.”

    “There is no credible evidence that tobacco causes an increased occurrence of cancer or heart disease.”

    “There is no scientific evidence of global warming.”

    “This new version of Windows will be stable and completely secure.”

    “Deficits don’t matter.”

  18. BG says:

    I hope all of these people who put their personal greedy agendas in front of generations of future Americans (not yet even born) rot in Hell.

  19. Winston Munn says:

    “Your dumb Quote of the Day is sponsored by Cognitive Dissonance”

    While Phil Gramm himself is sponsored by the banking lobby.

  20. toddie.g says:

    I’d have been shocked, SHOCKED if Phil Gramm would take any responsibility at all in this financial morass his legislation left this country in. What a gutless wonder he is, Mr Credit Default Swap himself. I hold him in the same esteem as dogdoo on the sidewalk, with my apologies to the dogdoo.

  21. toddie.g says:

    Phil Gramm’s record for the uninitiated :

    http://www.motherjones.com/politics/2008/05/foreclosure-phil

  22. P.S.: I meant to applaud Sharkbait’s comments from November 19th; they were succinctly accurate.

    (However, what is the “FIRE” Shb. referred to? Maybe an acronym I should know.)