David B. Shemano wrote: > ... The thesis of the thesis, written in 1987, was that Congress > (specifically the banking comittees) hated dealing with banking regulatory > policy because the very competitive nature of the industry (big banks vs. > small banks vs. S&Ls vs. securities industry, etc.) made policy-making low > benefit/high cost and was very happy to leave regulation to the regulatory > agencies, while the committees could focus on housing policy, development > banks and other high benefit/low cost activities. Congressional action re > regulation only happened in response to crises that forced action, which > explained why the deregulation of the S&Ls (and effective elimination of > distinction between banks and S&Ls) occurred in 1982 as opposed to the > mid-70s when first proposed by a national commission in 1971 (the crises was > high interest rates that effectively put the S&Ls out of business in 1981). > > Conclusion from the thesis: > > But I am convinced that eventually interstate banking, bank involvement in > securities, and overall further deregulation is an inevitability, possibly by > the end of the decade. The technological revolution the agencies faced in > the Sixties and Seventies and found impossible to keep up with, are finally > reaching the consciousness of Congress. The evolution of Sears into a > financial shopping market will not be reversed, but could lead to a clamor of > other financial service companies for equal rights so they can be > competitive. Issues like bank safety and insider trading will be favored as > topics of discussion, but they will not interfere with the steady march > towards financial deregulation.<
this seems valid, but I'd add that the "financial services industry" lobbied hard for deregulation. Both GOP and DP pols received generous donations from the S&L folks, for example. -- Jim Devine / "Nobody told me there'd be days like these / Strange days indeed -- most peculiar, mama." -- JL. _______________________________________________ pen-l mailing list pen-l@lists.csuchico.edu https://lists.csuchico.edu/mailman/listinfo/pen-l
