The Clintons and Wall Street: 24 Years of Enriching Each Other
by RICHARD W. BEHAN
CounterPunch, FEBRUARY 26, 2016
EXCERPT...
President Clinton appointed Robert Rubin, the Co-chairman of Goldman-Sachs, as his Treasury Secretary in January of 1995. Mr. Rubin went to work fashioning two laws of stupendous value to the New York banks, but President Clinton’s first term of office ended before they could be enacted.
Perhaps sensing the need to assure Clinton’s re-election, Wall Street saw fit nearly to triple its campaign contributions—from $11.17 million in 1992 to $28.37 million in 1996.
Continued nicely in office, Secretary Rubin triumphed with the passage of the Financial Services Modernization Act of 1999, which repealed the Glass-Steagall legislation of 1933. Now it was legal once more for financial institutions to mix commercial and investment banking; in essence, to use depositors’ funds for trading the bank’s own account in the stock market.
A year later President Clinton signed the Commodity Futures Modernization Act. This law ended the regulation of derivatives, freeing Wall Street to manufacture mortgage-backed securities and sell them without restriction; these complex derivatives would power the “subprime” swindle soon to commence.
Meanwhile, in Clinton’s Justice Department a deputy Attorney General named Eric Holder in 1999 authored a memo entitled “Bringing Criminal Charges Against Corporations.” It became the Holder Doctrine, and after the financial crisis of 2008 it would be of incalculable value to the Wall Street banks. On leaving the Administration Mr. Holder joined Covington Burling, the largest law firm in Washington, D.C.. Among its clients were Morgan Stanley, Citigroup, JP Morgan Chase, UBS, Bank of New York Mellon, Deutsche Bank, Wells Fargo, and Bank of America.
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http://www.counterpunch.org/2016/02/26/the-clintons-and-wall-street-24-years-of-enriching-each-other/
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