Reply #12: Commodity Futures Modernization Act -sponsor Phil Gramm slipped in as rider to Omnibus Spending Bill

[JohnWxy]

The Bet that Blew up wall Street

It (The CFMA) not only removed derivatives and credit default swaps from the purview of federal oversight, on page 262 of the legislation, Congress pre-empted the states from enforcing existing gambling and bucket shop laws against Wall Street.

"It makes it sound like they knew it was illegal," Kroft remarks.

"I would agree," Dinallo says. "They did know it was illegal. Or at least prosecutable."

In retrospect, giving Wall Street immunity from state gambling laws and legalizing activity that had been banned for most of the 20th century should have given lawmakers pause, but on the last day and the last vote of the lame duck 106th Congress, Wall Street got what it wanted when the Senate passed the bill unanimously. (yes, because Phil Gramm slipped it in as a rider to the Omnibus Spending bill and basically nobody in Congress new they were voting for it. The bill previously couldn't get out of committee. THat's why Gramm stuck it onto the Omnibus Spending Bill as rider. He knew everybody had to vote for that bill and nobody would see the CFMA in this 11,000 page document.__JW)