Posts
December 21, 2012Log in / Register
Text SizeHOMEEar to the GroundLarry's ListPolitics TodayAll Ear to the groundColumnsBill BoyarskyJuan ColeMarcia Alesan DawkinsAmy GoodmanChris HedgesRobert ScheerRichard SchickelCol. Ann WrightTruthdigger of the WeekMoreCartoonsMr. Fish CartoonsAll CartoonsArts & CultureAuthor InterviewBook ExcerptsBook ReviewsEssaysFilm ReviewsTheater ReviewsDigsShopTruthdig MerchandiseTruthdig BooksAuthor BooksRobert Scheer BooksChris Hedges BooksMr. Fish T-shirtsMr. Fish PrintsMultimediaA/V BoothTruthdig RadioPhoto EssaysPodcastsQ&A: Live ChatsAdvertiseDonateAboutdiv#src_container {width: 175px;background: #b59d91;height: 24px;padding: 5px;display: block;float: right;margin-top: 6px;z-index: 2;}#src_container input {width: 137px;height: 23px;border: 1px solid #5b5b5b;padding: 5px;}input#src_btn_raquo {width: 30px;height: 24px;background-color: #6f4434;color: #fff;border: none;}>" id="src_btn_raquo">Trending: chris hedges connecticut school shooting gun control robert scheer westboro baptist church
Crony Capitalism's Power CoupleGingrich Switches on Gay Marriage, Limbaugh ‘Honored’ for Lies, and More
A Word Against Nate Silver
Happy Holidays From Truthdig
A Surprise Defense of Robert Bork
Schoolhouse GlockThe Shot Heard Round the World
Concussion
Marijuana Law Enforcement in America
The End
Crony Capitalism’s Power CoupleBy Robert Scheer
A Surprise Defense of Robert BorkBy Stanley Kutler
Newtown’s Moral Authority for ActionBy Ralph Nader
Cliffhanger: Obama’s Unnecessary and Unwise ConcessionsBy Robert Reich
A Word Against Nate Silver Gingrich Switches on Gay Marriage, Limbaugh ‘Honored’ for Lies, and More Grab a Fork, Mealworm Time Is Approaching Liberals Back to Giving Obama a Pass New York Stock Exchange Operator to Be Sold for Billions Anonymous Muzzled on Crusade Against Westboro Baptist Church
Happy Holidays From Truthdig Fox News Interviews Santa Claus to Make Point About ‘War on Christmas’ Mayhem in the Middle East Let George Takei Help You Come Out This Holiday Season
A Simple, Excellent and Surprising FilmBy Richard Schickel A World Without Words
By Lauren B. Davis Hollywood’s Raid on Convention
By Richard Schickel Understanding Economics in Plain English
By Thomas Hedges, Center for Study of Responsive Law
The Questions Education Reformers Aren’t AskingDig led by Mike Rose Gore Vidal: His Life and Legacy
Dig led by Truthdig Staff
advertisement-->
All the Sad Young Literary MenBy Keith Gessen
$16.47
advertisement
-->
The Rehnquist Choice: The Untold Story of the Nixon Appointment That Redefined the Supreme CourtBy John W. Dean
$14.00
advertisement
-->
Ringer T$23
Robert Scheer's Columns Crony Capitalism’s Power Couple 
Email 
Print 
ShareTweet
Posted on Dec 21, 2012 
AP/Michael S. GreenThen-Sen. Phil Gramm campaigns for the presidency in Clinton, Iowa in 1996.
By Robert Scheer
Where is Phil Gramm hiding? The former Republican senator from Texas, who wrote the radical banking deregulation of the 1990s and was rewarded for his efforts to enrich the banks with a plum job at Switzerland-based UBS, has not been heard from since his bank got nailed by the G-men. Or, as The New York Times put it, UBS now has the distinction of being “the first big global bank in more than two decades to have a subsidiary plead guilty to fraud.”
Surely Gramm, who retired from the bank last year, must know something about the nefarious activities conducted over a timespan when he was helping to manage the firm. This latest scandal, involving the rigging of a major trusted banking interest rate, might finally test the theories that he has long written into law that assume banks are best when regulated by themselves—a now obviously dumb idea.
As the Wall Street Journal reported on Thursday: “U.S., U.K. and Swiss authorities alleged a vast conspiracy led by UBS AG to rig interest rates tied to trillions of dollars in loans and other financial products, indicating the practice was far more pervasive than previously known.” But what did Gramm know about this criminal behavior at a bank he helped govern, and when did he know it?
In a deal brokered with the criminal division of the U.S. Justice Department, UBS was also fined $1.5 billion in the massive Libor interest-rate-fixing scam that evidenced a pattern of deep corruption across a score of top banks. But Gramm, the man most responsible for the repeal in 1999 of 60 years of sensible banking regulation that enabled the financial industry to run wild, has not responded to a single question from the mainstream media concerning UBS’ criminal behavior. I assume he has been queried, given his important prior contribution to the sorry state of banking.
When Gramm was still at the bank, his bio page on the UBS website paid tribute to his prior achievements in government: “As chairman of the Banking Committee, Sen. Gramm steered through legislation modernizing the nation’s banking, insurance and securities laws.”
That “modernization” in 2000 made legal the mergers that created the too-big-to-fail banks that had to be bailed out by taxpayers, as well as insuring that the burgeoning markets in toxic derivatives and credit default swaps were summarily freed from all government regulation. Bill Clinton signed off on the new laws, and his successor, George W. Bush, enthusiastically enforced them.
Advertisement
How fitting then to find the two presidents united again on several occasions documented on the UBS website participating in bank-sponsored panels on “Revitalizing America.” Clinton’s foundation has partnered with UBS in mentoring small businesses in poorer communities, the very communities hit hardest by the banking shenanigans of the past decade. Ever the optimist, Clinton promised that “Our partnership with UBS Wealth Management Americas will give these businesses essential new opportunities to expand and to make a positive difference in underserved communities.” With friends like these…The cozy bipartisan reunion of Gramm with the two presidents under the auspices of UBS goes a long way toward explaining the source of our economic misery. It would be instructive to now ask all three whether the crimes of UBS had been enabled by their own actions while they were still running the U.S. government.
That is why I assume the normally loquacious Gramm is on the lam, or surely we would have heard from him by now, at least on the Fox News Channel that has been so solicitous of his wisdom in the past. But not just on Fox. Gramm and his wife Wendy, who was rewarded with a position on Enron’s board of directors after her own stint in government undermining consumer protections, were the high priest and priestess of the religion of radical deregulation that captivated U.S. presidents from Ronald Reagan through Bill Clinton and on to George W. Bush.
Or does Gramm still blame the economic crash on those of us he condemned as “a nation of whiners,” a statement that caused his ejection from a leading role in the 2008 presidential campaign of Sen. John McCain?
If Phil Gramm were to feign ignorance in response to that line of questioning, the way Wendy did after the caper at Enron, where she was a member of the audit committee, it would certainly make the case for ever more government supervision of corporate accountability.
This was, after all, one of the most powerful couples to ever swirl through the platinum revolving door between the highest level of government and corporate power, an exhibit of crony capitalism performed with such exquisite finesse, and yet wild abandonment, that it can almost be considered kinky in its indifference to real world outcomes.
Click here to check out Robert Scheer’s new book,“The Great American Stickup: How Reagan Republicans and Clinton Democrats Enriched Wall Street While Mugging Main Street.”
Keep up with Robert Scheer’s latest columns, interviews, tour dates and more at www.truthdig.com/robert_scheer.
TAGS: bill clinton corruption crony capitalism deregulation enron fraud government john mccain libor libor scandal phil gramm robert scheer switzerland ubs wall street wendy gramm
Related Entries
New York Stock Exchange Operator to Be Sold for Billions
Mayhem in the Middle East
Mayhem in the Middle East
‘Left, Right & Center:’ School Shooting, Susan Rice Withdraws, and More 
Email to a friend Get truth delivered to
your inbox every week.
Previous item: A Surprise Defense of Robert BorkNew and Improved Comments
If you have trouble leaving a comment, review this help page. Still having problems? Let us know. If you find yourself moderated, take a moment to review our comment policy.
Please enable JavaScript to view the comments powered by Disqus.
Get Truthdig in your inbox
Newsletter
Become a Fan
Follow Us
Subscribe
#donation_div {display:none;}.popup {background:#FFF; border:1px solid #333; padding:1px;}.popup-header {height:65px; padding: 30px 40px 10px 50px;}.popup-header h2 {margin:0; padding:0; font-size:18px; float:left;}.popup-header .close-link {float:right; font-size:11px;}.popup-body {padding: 20px 70px 20px 50px;}a {color: #990000;}CloseGive the gift of independent journalism.
Support Truthdig by making a donation of at least $25 in someone's name, and we'll send him or her a signed letter of appreciation from our publisher.
With your support, we've been able to pay writers such as Chris Hedges, Col. Ann Wright, Mr. Fish and Nomi Prins.
We've sent reporters around the world, from Afghanistan to Cairo to Cuba.
Thanks to you, our mission to find and publish a range of insightful opinion and analysis from a progressive point of view continues.
Support Truthdig
HOME|Digs|Reports|Arts & Culture|Uncovered|Ear to the Ground|A/V Booth|CartoonsTags|Bazaar|Podcast|About Us|Contact Us|User Agreement|Privacy Policy|FAQ: Comments and Moderation | Google+ Google+
A Progressive Journal of News and Opinion. Editor, Robert Scheer. Publisher, Zuade Kaufman.© 2012 Truthdig, LLC. All rights reserved. Web site development by Hop Studios
View the Original article
0 comments:
Post a Comment