Flashback to 1999 – Specter votes for Gramm-Leach-Bliley
Sen. Specter has made it clear he feels Rep. Toomey shares some portion of the blame for over-aggressively deregulating the banking industry. But Specter should review his own record before he speaks again.
One consequential piece of legislation from 1999, the Gramm-Leach-Bliley Act, has been frequently criticized as a primary cause of the housing credit bubble. Gramm-Leach-Bliley included a partial repeal of the 1933 Glass-Steagall Act, allowing bank holding companies to purchase other financial institutions and get more heavily involved in investment services.
Now, I personally don’t buy the hype that Gramm-Leach-Bliley did what its critics say it did. In some respects it helped facilitate a number of very helpful mergers during the financial collapse. Even Bill Clinton was defending it as of 2008. But what do I know…
How did Specter vote on GLBA? He voted in favor of the final conference report in a 90-8 (1 Present, 1 Not Voting) Senate roll call vote.