by sluggertwo on Mon Nov 02, 2009 3:47 pm
WOW! Found myself checking out Senator Gramm after that post of Jimmy's, and now I'm having to agree with him about something again. Giving me chest pains. Here's the down low on this lowdown creep who used to be a Democrat and turned Republican just to keep a job and infiltrate the enemy camp:
Gramm was one of five co-sponsors of the Commodity Futures Modernization Act of 2000.[5] One provision of the bill is often referred to as the "Enron loophole" because some critics blame the provision for permitting the Enron scandal to occur.[6] Some argue[who?] that it is significant that Gramm's wife, Wendy Lee Gramm, was on the board of directors of Enron when it collapsed, and she was named in many of the Enron shareholder lawsuits.
In December 2002, Gramm left his Senate seat a few weeks before the expiration of his term in hopes that his successor, fellow Republican John Cornyn, could gain seniority over other newly elected senators. However, Cornyn did not gain additional seniority due to a 1980 Rules Committee policy.[7]
[edit] 2007 mortgage and 2008 financial & economic crises
See also: Gramm-Leach-Bliley_Act#Controversy
Some economists state that the 1999 legislation spearheaded by Gramm and signed into law by President Clinton — the Gramm-Leach-Bliley Act — was significantly to blame for the 2007 subprime mortgage crisis and 2008 global economic crisis.[8][9] The Act is most widely known for repealing portions of the Glass-Steagall Act, which had regulated the financial services industry.[10]
Gramm responded to criticism of the act by stating that he saw "no evidence whatsoever" that the sub-prime mortgage crisis was caused in any way "by allowing banks and securities companies and insurance companies to compete against each other."[11] The Act passed the House by an overwhelming majority and passed by unanimous consent in the Senate, though it was introduced on the last day before Christmas holiday and never debated by either congressional body. [12]
Gramm's support was later critical in the passage of the Commodity Futures Modernization Act of 2000, which kept derivatives transactions, including those involving credit default swaps, free of government regulation.[13]
In its 2008 coverage of the financial crisis, The Washington Post named Gramm one of seven "Key Players In the Battle Over Regulating Derivatives", for having "[p]ushed through several major bills to deregulate the banking and investment industries, including the 1999 Gramm-Leach-Bliley act that brought down the walls separating the commercial banking, investment and insurance industries".[14]
2008 Nobel Laureate in Economics Paul Krugman, a supporter of Barack Obama, described Gramm during the 2008 presidential race as "the high priest of deregulation," and has listed him as the number two person responsible for the economic crisis of 2008 behind only Alan Greenspan.[15][16] On October 14, 2008, CNN ranked Gramm number seven in its list of the 10 individuals most responsible for the current economic crisis.[17] In January 2009 Guardian City editor Julia Finch identified him as one of twenty-five people who were at the heart of the financial meltdown.[18] Time included Gramm in its list of the top 25 people to blame for the economic crisis.[19]
[edit] John McCain 2008 presidential campaign
Gramm was co-chair of John McCain’s presidential campaign[20] and his most senior economic adviser[21][22] from the summer of 2007[23] until July 18, 2008.[20] In a July 9, 2008 interview on McCain's economic plans, Gramm explained the nation was not in a recession, stating, "You've heard of mental depression; this is a mental recession." He added, "We have sort of become a nation of whiners, you just hear this constant whining, complaining about a loss of competitiveness, America in decline."[24] Gramm's comments immediately became a campaign issue. McCain's opponent, Senator Barack Obama, stated, "America already has one Dr. Phil. We don't need another one when it comes to the economy. ... This economic downturn is not in your head."[25] McCain strongly denounced Gramm's comments.[26] On July 18, 2008 Gramm stepped down from his position with the McCain campaign.[27] Explaining his remarks, Gramm stated that he had used the word "whiners" to describe the nation's politicians rather than the public, stating "the whiners are the leaders."[28] In the same interview, Gramm said, "I'm not going to retract any of it. Every word I said was true."[29]
[edit] Current employment
As of 2009, Gramm is employed by UBS AG as a Vice Chairman of the Investment Bank division. UBS.com states that a Vice Chairman of a UBS division is "...appointed to support the business in their relationships with key clients."[30] He joined UBS in 2002 immediately after retiring from the Senate.[31]
So the guy sponsors all kinds of bank deregulation, his wife is involved in the Enron deal, he gets on McCain's election team and torpedoes the old man at every turn, and comes out of it all as a top official in one of the biggest International Banks, that also seems to have a dodgey track record on the edge of being criminal. By the way, it was CLINTON who signed the bill that started all the mess, Jimmy, my boy, and I'm thinking Gramm has always been an undercover Democrat, and poor old McCain, even after all his war experience, failed to see the double crossing double agent inside his campaign.
And this guy is now worth millions and living in Hawaii, and not in jail or in front of a firing squad? Funny old world, innit?
