Phil Gramm was the Republican leader who pushed through Glass-Steagall.
Gramm, a PhD in Economics, was convinced that US banks could be more competitive if the restrictions of Glass-Steagall were removed. Sounded so good.
Economically, it sounded so good. But as brilliant as Gramm was in understanding economic theory, he was a dunce when it came to understanding the human nature side of the equation. He let the millions of bats out of the cave.
Gram’s bill passed the US Senate strictly on party lines, no Dem voted for it and Clinton threatened to veto it. It was during the House and Senate reconciliation committee that the la.guage that did the damage was put in.
The bill then passed the Senate 92-8
Niall Ferguson has made the good point that economists are beguiled by mathematical models and are unable to factor in properly the historical and social elements that go into an economy. Gramm knew what he knew. He tried to use a tool that was not equal to the task.