"Former President Bill Clinton: I think that the only thing that our administration did or didn't do that we should have done is to try to set in motion some more formal regulation of the derivatives market. They're wrong in saying that the elimination of the Glass-Steagall division between banks and investment banks contributed to this. Investment banks were already…banks were already doing investment business and investment companies were already in the banking business. The bill I signed actually at least puts some standards there. And if you look at the evidence of the banks that have gotten in trouble, the ones that were most directly involved in there … in a diversified portfolio tended to do better.
Some of the conservatives said that I was responsible because I enforced the Community Reinvestment Act, and they said that's what made all these subprime mortgages be issued. That's also false. The community banks, the people that loan their money in the community instead of buying these esoteric securities, they're doing quite well. " CNN.com
Everybody's favorite charming rogue uncle, or, in my case, charming rogue nephew. We pretty much all like this guy, having gotten over the chagrin of his more or less public bad boy behavior. What came after made his philandering look trivial. What the hell, if his wife could say at her swearing-in as Secretary of State that he had contributed immensely to the enrichment of her experience… Interesting.
What he says here makes a good deal of sense. The whole derivatives/hedge fund/naked shorting scam should have been reined in and he must bear part of the blame for that.
On the other hand, it is true that the local and community oriented banks who have been content to abide in the retail banking markets have done very well.
They should be proud of their membership in the club of merely local pomposity. They have done us all a service and that should be worth a comfortable round of golf at the country club any day. pl