“We should ban banks from risk-taking because society is going to pay the price… It was obvious that their profits were simply cash borrowed from destiny with some random payback time.”
Nassim Nicholas Taleb
“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.”
William Jefferson Clinton, November 12, 1999
BJ was a genius, what could possibly go wrong? Oh wait… never mind!