You might have heard of Dodd-Frank, the financial reform bill signed into law after the financial collapse. It was supposed to reign in the Big Banks so we’d never allow them to become so large that they could again become “too big to fail”. Hillary touted it as a strong start and promises more of the same measures. Sounds great right?
Yeah, well that’s where the media usually ends the story. Here’s the rest of it:
A little deeper digging reveals that in 2008 the banks were 43.3% of America’s GDP. Insane, right? That was a lot of concentrated power. No wonder the system crashed. So how was it ever allowed to get that high in the first place?
A lot of reasons, but the biggest was the repeal of another financial reform law called Glass-Steagal.
Watch the Democrats debate the issue here:
It separated regular everyday banking accounts (checking/savings) from investment banking. In other words the Banks were banned from gambling with our money. It also prevented the banks from merging to avoid unmanageable consolidations of financial power and monopolies. Prior to that law being gutted, the Big Banks took up only 15% of GDP. Still a large portion of the economy, but not enough to cause a global financial meltdown.
So what is it now after passing the Dodd-Frank law? Surely it must be lower, right? Nope. Now it’s 63% of GDP.
SIXTY THREE PERCENT.
How is it possible that a bill that imposed new regulations, albeit very few, actually helped to increase the size of the Big Banks? Smaller banks couldn’t afford all the regulatory adjustments required, so when some of them struggled to stay afloat the bigger banks bought them out. This consolidation ergo made the Big Banks even bigger than before. Clever, isn’t it?
Barney Frank, co-author of that worthless bill, is no longer a member of Congress. He retired in 2013. What’s he up to now? Why, he’s on the board of directors for a bank. Signature Bank, to be specific. And he wants you to vote for Hillary. In fact, he just helped shape the Democratic Platform.
And lest I forget, you might be wondering who the hell made the mistake of gutting the regulatory protections of the Glass-Steagal law, which put us on this disastrous path in the first place. Any guesses…?
Bill Clinton. Keep that in mind before handing his wife the keys to the White House.
Watch Bill admit his mistake, then immediately point the finger at Republicans. Fact is, he was President. He didn’t have to sign the bill that the Republicans voted for but he did anyway.