Originally Posted by Villages Kahuna

A lot of people forget history. I try not to. In this instance, I'm sure Newt Gingrich would like to avoid any discussion of his role in de-regulating the banks, a move which ultimately lead to the financial crisis of 2007-8.

In 1999, Gingrich was the Speaker of the House in the 105th Congress and along with Senate Majority Leader Trent Lott and Senator Phil Gramm of Texas, jammed thru legislation that repealed the Glass-Steagall Act of 1932. Glass-Steagall was the law that separated commercial banks from investment banks, prohibiting commercial banks from becoming involved in trading and the use of exotic financial products using the capital of the banks to leverage into those new and highly risky businesses and products.

Both houses of Congress were heavily lobbied by the banks, who wanted the prohibitions on them becoming involved in those highly profitable but risky busVKVinesses lifted. The commercial bankers desperately wanted a piece of the huge bonuses being earned by the Wall Street investment bankers.

The repeal of the laws and regulations that for 70 years had kept the U.S. banking system strong and safe and capable of providing the credit needed for a strong economy was the "beginning of the end" and lead to the almost complete failure of our banking system less than ten years later.

I'm sure Gingrich wouldn't want to be questioned on his role in getting the repeal of Glass-Steagall jammed thru the House. That's a part of his personal history that I'm sure he'd like to forget...and he'd certainly like us to forget!