In the "You Just Can't Make This Stuff Up" department....

[Junkdrawer]

...

So what do we do now? In 2000, the 106th Congress as its final effort passed the Commodity Futures Modernization Act (CFMA), and, disgracefully, President Clinton signed it. It opened up the bucket-shop loophole that capsized the world's economic system. With the stroke of a presidential pen, a century of valuable protection was lost.

Even with that, the dangerous swaps still almost found themselves subjected to state oversight. In 2000, AIG asked the New York State Insurance Department to decide if it wanted to regulate them, but the department's superintendent, Neil Levin, said no. The question was not posed by AIGFP, but by the company's main office through its general counsel, a reminder that not long ago, AIG was a blue chip with a triple-A rating that touted its integrity.

We can't know why Levin rejected the chance to regulate the tricky trade. He died in the restaurant at the top of the World Trade Center on the morning of 9/11. A Pataki-appointed former Goldman Sachs vice president, Levin may have shared other Wall Streeters' love of derivatives as the last big-money sure thing as the IPO craze wound down. Or maybe he saw swaps as gambling rather than insurance, hence beyond his jurisdiction. Regardless, current Insurance Superintendent Eric Dinallo told me, "I don't agree with his answer." Maybe the economic crisis could have been averted if Levin had answered otherwise. "How close we came . . ." Dinallo mused.

....
http://www.villagevoice.com/content/printVersion/850296

[elleng]

1. MUST READ article at link:

'Who cooked the world's economy? It wasn't your mortgage.'

Learn ALL ABOUT IT.

[Junkdrawer]

6. It's a GREAT article....Here's the DU thread...

http://www.democraticunderground.com/discuss/duboard.ph...

When I read the strange 9/11 connection, it just gave me pause...

[elleng]

7. Thanks, Junk.

.

[Laelth]

2. I shall add this to the list of ways in which Clinton stabbed the left in the back.

Abolished AFDC and gave us nearly-useless TANF,
Telecommunications Act of 1996,
Repeal of Glass-Steagall in 1999,

and now ...

the Commodity Futures Modernization Act (CFMA).

Clinton was the best Republican President since Eisenhower (but, admittedly, he was better than the alternatives offered up by the R Party).



-Laelth

[ColbertWatcher]

3. How far back in history will the GOP reach to find someone to blame?

Fine, Clinton signed the CFMA. Did Ken Lay need it to lie to his investors? Did Madoff need it to lie to his investors? What about Arthur Anderson and WorldCom? The laws will never be able to stay ahead of the sociopaths who will simply lie to get more money.

[elleng]

8. The laws CAN stay ahead,

IF they are enforced. 'Deregulation' regimes won't do it.

[ColbertWatcher]

10. I agree enforcement can stay ahead, but the criminals are always finding ways ...

... to break the law.

[elleng]

11. Yes, they are!

That's what criminals do! Keeps them employed! (and then housed!)

[REACTIVATED IN CT]

12. Even if Clinton had vetoed it, the Repuke Congress would

have overridden his veto.

[Laelth]

4. And let me add ...

The repeal of Glass-Steagall had a tremendous impact and greatly helped cause the mess we are in.

See here: http://en.wikipedia.org/wiki/Glass-Steagall_Act#Repeal_...



-Laelth

[G_j]

5. Great article

the V. Voice still has good reading.

[malaise]

9. Get this to the Greatest page

Superb article.

Thanks.