Clinton: Signing Statement, The Gramm-Leach-Bliley Act, November 12, 1999: After the recession of George H.W. Bush, the United States entered its longest peacetime economic expansion in U.S History. By signing the GLB Act, the provisions of the Glass-Steagall act that separated commercial and investment banks were repealed, allowing commercial and investment banks to come together, paving the way for banks labeled “too big to fail.” This law provided access to individual’s investments and savings accounts for institutions to engage in speculative trading. President Bill Clinton Statement on Signing the Gramm-Leach-Bliley Act November 12, 1999 Today I am pleased to sign into law S. 900, the Gramm-Leach-Bliley Act. This historic legislation will modernize our financial services laws, stimulating greater innovation and competition in the financial services industry. America's consumers, our communities, and the economy will reap the benefits of this Act. Beginning with the introduction of an Administration-sponsored bill in 1997, my Administration has worked vigorously to produce financial services legislation that would not only spur greater competition, but also protect the rights of consumers and guarantee that expanded financial services firms would meet the needs of America's underserved communities. Passage of this legislation by an overwhelming, bipartisan majority of the Congress suggests that we have met that goal. The Gramm-Leach-Bliley Act makes the most important legislative changes to the structure of the U.S. financial system since the 1930s. Financial services firms will be authorized to conduct a wide range of financial activities, allowing them freedom to innovate in the new economy. The Act repeals provisions of the Glass-Steagall Act that, since the Great Depression, have restricted affiliations between banks and securities firms. It also amends the Bank Holding Company Act to remove restrictions on affiliations between banks and insurance companies. It grants banks significant new authority to conduct most newly authorized activities through financial subsidiaries. Removal of barriers to competition will enhance the stability of our financial services system. Financial services firms will be able to diversify their product offerings and thus their sources of revenue. They will also be better equipped to compete in global financial markets. Although the Act grants financial services firms greater latitude to innovate, it also contains important safety and soundness protections. While the Act allows common ownership of banking, securities, and insurance firms, it still requires those activities to be conducted separately within an organization, subject to functional regulation and funding limitations. Both the Vice President and I have insisted that any financial services modernization legislation must benefit American communities by preserving and strengthening community reinvestment. I am very pleased that the Act accomplishes this goal. The Act establishes an important prospective principle: banking organizations seeking to conduct new nonbanking activities must first demonstrate a satisfactory record of meeting the credit needs of all the communities they serve, including low- and moderate-income communities. Thus, the law will for the first time prohibit expansion into activities 273 such as securities and insurance underwriting unless all of the organization's banks and thrifts maintain a "satisfactory" or better rating under the Community Reinvestment Act (CRA). The CRA will continue to apply to all banks and thrifts, and any application to acquire or merge with a bank or thrift will continue to be reviewed under CRA, with full opportunity for public comment. The bill offers further support for community development in the form of a new Program for Investment in Microentrepreneurs (PRIME), to provide technical help to low and moderate income microentrepreneurs. The Act includes a limited extension of the CRA examination cycle for small banks and thrifts with outstanding or satisfactory CRA records, but expressly preserves the ability of regulators to examine these institutions at any time for reasonable cause, and does not affect regulators' authority in connection with an application. The bill also includes a requirement for disclosure and reporting of CRA agreements. (Answer)One paragraph each: Specifically what actions taken by president Clinton helped lead to the great recession that occurred during the presidency of George W Bush? 2. How does this describe the role of government in economy? Use quotes from document above to support argument.
Clinton: Signing Statement, The Gramm-Leach-Bliley Act, November 12, 1999: After the recession of George H.W. Bush, the United States entered its longest peacetime economic expansion in U.S History. By signing the GLB Act, the provisions of the Glass-Steagall act that separated commercial and investment banks were repealed, allowing commercial and investment banks to come together, paving the way for banks labeled “too big to fail.” This law provided access to individual’s investments and savings accounts for institutions to engage in speculative trading. President Bill Clinton Statement on Signing the Gramm-Leach-Bliley Act November 12, 1999 Today I am pleased to sign into law S. 900, the Gramm-Leach-Bliley Act. This historic legislation will modernize our financial services laws, stimulating greater innovation and competition in the financial services industry. America's consumers, our communities, and the economy will reap the benefits of this Act. Beginning with the introduction of an Administration-sponsored bill in 1997, my Administration has worked vigorously to produce financial services legislation that would not only spur greater competition, but also protect the rights of consumers and guarantee that expanded financial services firms would meet the needs of America's underserved communities. Passage of this legislation by an overwhelming, bipartisan majority of the Congress suggests that we have met that goal. The Gramm-Leach-Bliley Act makes the most important legislative changes to the structure of the U.S. financial system since the 1930s. Financial services firms will be authorized to conduct a wide range of financial activities, allowing them freedom to innovate in the new economy. The Act repeals provisions of the Glass-Steagall Act that, since the Great Depression, have restricted affiliations between banks and securities firms. It also amends the Bank Holding Company Act to remove restrictions on affiliations between banks and insurance companies. It grants banks significant new authority to conduct most newly authorized activities through financial subsidiaries. Removal of barriers to competition will enhance the stability of our financial services system. Financial services firms will be able to diversify their product offerings and thus their sources of revenue. They will also be better equipped to compete in global financial markets. Although the Act grants financial services firms greater latitude to innovate, it also contains important safety and soundness protections. While the Act allows common ownership of banking, securities, and insurance firms, it still requires those activities to be conducted separately within an organization, subject to functional regulation and funding limitations. Both the Vice President and I have insisted that any financial services modernization legislation must benefit American communities by preserving and strengthening community reinvestment. I am very pleased that the Act accomplishes this goal. The Act establishes an important prospective principle: banking organizations seeking to conduct new nonbanking activities must first demonstrate a satisfactory record of meeting the credit needs of all the communities they serve, including low- and moderate-income communities. Thus, the law will for the first time prohibit expansion into activities 273 such as securities and insurance underwriting unless all of the organization's banks and thrifts maintain a "satisfactory" or better rating under the Community Reinvestment Act (CRA). The CRA will continue to apply to all banks and thrifts, and any application to acquire or merge with a bank or thrift will continue to be reviewed under CRA, with full opportunity for public comment. The bill offers further support for community development in the form of a new Program for Investment in Microentrepreneurs (PRIME), to provide technical help to low and moderate income microentrepreneurs. The Act includes a limited extension of the CRA examination cycle for small banks and thrifts with outstanding or satisfactory CRA records, but expressly preserves the ability of regulators to examine these institutions at any time for reasonable cause, and does not affect regulators' authority in connection with an application. The bill also includes a requirement for disclosure and reporting of CRA agreements. (Answer)One paragraph each: Specifically what actions taken by president Clinton helped lead to the great recession that occurred during the presidency of George W Bush? 2. How does this describe the role of government in economy? Use quotes from document above to support argument.
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