Is there a connection between Enron and the current bank failures?

[ColbertWatcher]

Besides they're both examples of GOP policies, are there any people connected to both? Are any of the banks involved in the Enron debacle?

Anyone know?

[sinkingfeeling]

1. Phil Gramm: Enron 'loophole' and the Gramm-Leach-Bliley Act. Also 'financial advisor' to McSame.

[ColbertWatcher]

3. Remind me: what was the Enron loophole? n/t

[lapfog_1]

5. here ya go

http://en.wikipedia.org/wiki/Commodity_Futures_Modernization_Act_of_2000

[sinkingfeeling]

6. It’s the "Enron loophole," which exempts energy speculators who make trades electronically from US

regulation. This is probably the cause of 2008's gasoline prices... speculation accounted for about 60% of all trading according to a recent report.

[TxBlue]

4. Phil Gramm - McPain's financial advisor

because John "I don't know much about economics" McPain

[ananda]

2. Enron and deregulation started the trend.

nt

[HamdenRice]

7. In a word, no, there is absolutely no connection

The only thematic connection is that some of Enron's problems had to do with securitization and some of the current financial crisis has to do with securitization, but that's hardly a connection.

[ColbertWatcher]

9. Nothing? Not even the deregulation trend? n/t

[liberal N proud]

8. Same policies and practices expecting different results

[EC]

10. The quicker pace of trades due to the Enron loophole

has speculators all over the world using the stock market as a day at the casinos, buying and selling all in the same day at split second speeds...no regulation, causing over pricing of assets i.e. Arthur Anderson bookkeeping...inflated home values mortgaged at 125% equity...no actual cash to back it up, just worthless paper....