Citicorp and Travelers Merger
George Bush likes to say that long term history will be the judge of his actions. In fact, he just said it again at his final press conference. If we take that to heart, as his arrogant ultra-rich turd of a brain thinks we do, then the Citigroup merger with Travellers is looking less like the visionary idea of new economy executives and more like a pile of stinking dogma intended to distract you from the looting fest about to follow. Well, it only looked like the former in press releases by Travellers and Citi.
Did I mention that Travellers and Citigroup merged back in 1998 in direct violation of the Glass-Steagall Act? Back in the Great Depression, people thought it was a shame that they couldn’t withdraw money from their bank account to spend at their favorite Hooverville just because some investment muckety muck lost their money on the stock market. So the Glass-Steagall Act was born depriving many a trust fund juvenile from gaining greater riches with the working man’s money.
Rather than enforce the law on Citi and Travellers, Mr. Business himself, Bill Clinton repealed it. Think how juicy the repeal of the Glass-Steagall was. It was so juicy in fact that these spoiled brats at Citi and Travellers couldn’t even wait for it. They went ahead, rummaged through their parents closet and opened their Christmas present the day after Thanksgiving.
As if we needed another data point on whether the Glass-Steagall Act was a good idea, there is a side story to this. Remember that whole Savings and Loan Scandal? Funny thing. It turns out that this followed a bout of financial “deregulation” shortly after The Gipper entered the Whitehouse. Ha ha ha… I bet you’ll laugh all the way to the unemployment office.