Thursday, April 24, 2008

The Debts of the Spenders: The Costs of Glass-Steagall

AFSCME, one of America's largest unions, publicly blamed the consolidation of Citi's Commercial and Investment arms for the sub-prime debacle. The merger of the two sides was made possible by the repeal of Glass-Steagall, an important Depression era regulatory measure meant to prevent speculative froth from overcoming the markets.

Coincedentally, former Treasury Sec. Robert Rubin, who championed the repeal, became Citigroup's Chairman immediately after the repeal took effect.


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