The truth is, however, the Gramm-Leach-Bliley Act had little if anything to do with the current crisis. If this bill really had "stripped the safeguards that would have protected us," then both parties share the blame, not just "John McCain’s friend." The bill was signed into law by President Clinton, a Democrat. Among the Democrats voting for the bill: Obama’s running mate, Joe Biden. The Senate passed the bill by a vote of 90 – 8. The measure passed the House 362 – 57, with 155 Democrats voting for the bill. It’s true that Gramm authored the act, but what became law was a widely accepted bipartisan compromise. The bill in question is the Gramm-Leach-Bliley Act, which was passed in 1999 and repealed portions of the Glass-Steagall Act, a piece of legislation from the era of the Great Depression that imposed a number of regulations on financial institutions. The only support offered for the ad’s claim is one line in one newspaper article that reported the bill "is now being blamed" for the crisis, without saying who is doing the blaming or on what grounds. When we contacted spokesman Trevor Fitzgibbons to ask just what "safeguards" the ad was talking about, he came up with not one single example. It claims the bill "stripped safeguards that would have protected us." Phil Gramm, a friend and one-time adviser to McCain’s campaign. The Political Action ad blames a banking deregulation bill sponsored by former Sen. Narrator: Political Action is responsible for the content of this advertisement. Americans shouldn’t have to foot the bill for mistakes that John McCain and his friends made. Main Street giving Wall Street $700 billion and getting nothing in return? It’s outrageous. Narrator: And now that the markets are in meltdown? John McCain’s friend George Bush wants hardworking Americans to write the biggest blank check in history, bailing out the Wall Street firms and the Washington lobbyists who got us into this mess. McCain: I think the deregulation was probably helpful to the growth of our economy. And John McCain himself? He’s stood by "deregulation" time and time again. And now? He runs McCain’s presidential campaign. John McCain’s friend Rick Davis lobbied for Fannie and Freddie for years, "defending" them against stricter regulation. McCain asked Gramm to help write his economic plan. Narrator: John McCain’s friend Phil Gramm wrote the bill that deregulated the banking industry, and stripped the safeguards that would have protected us. Narrator: We all know the economy is in crisis, but who’s responsible? 30, saying "Obama was notably silent" while Democrats blocked reforms leaving taxpayers "on the hook for billions." Both ads were to run nationally. The McCain-Palin campaign released its own 30-second TV spot Sept. John McCain and Republican allies who supported banking deregulation. 25 released a 60-second TV ad called "My Friends’ Mess," blaming Sen. AnalysisĪs Congress wrestled with a $700 billion rescue for Wall Street’s financial crisis, partisans on both sides got busy – pointing fingers. Experts have cited everyone from home buyers to Wall Street, mortgage brokers to Alan Greenspan. In fact, there’s ample blame to go around. And it’s unclear how much the legislation would have helped, as McCain signed on just two months before the housing bubble popped. Republicans, who controlled the Senate at the time, did not bring the bill forward for a vote. But, the ad says, Obama "was notably silent" while Democrats killed the bill. The ad says that the crisis “didn’t have to happen,” because legislation McCain cosponsored would have tightened regulations on Fannie Mae and Freddie Mac. Moreover, the bill had nothing to do with causing the crisis, and economists – not to mention President Clinton – praise it for having softened the crisis.Ī McCain-Palin ad, in turn, blames Democrats for the mess. Gramm’s legislation had broad bipartisan support and was signed into law by President Clinton. A Political Action ad plays the partisan blame game with the economic crisis, charging that John McCain’s friend and former economic adviser Phil Gramm “stripped safeguards that would have protected us.” The claim is bogus.
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