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DEBATE FACT #3: THE 1999 DEREGULATION THAT JOE BIDEN SUPPORTED

Summary:.

Barack Obama just blamed the very same bill that Joe Biden supported for the current economic crisis.

The Facts:

The Gramm-Leach-Bliley Act Was Supported By And Authored By Members Of Obama’s Campaign

· The Washington Post: Barack Obama Attacks The Gramm-Leach-Bliley Act Despite The Fact That It Was Supported By Members Of His Economic Team. “One element of the Obama campaign’s brief against Mr. McCain is that he supported repeal of the law separating commercial banks from investment banks. … Would it be churlish to point out that another author of the Gramm-Leach-Bliley law is former congressman Jim Leach, a founder of Republicans for Obama? Or that Obama advisers Lawrence H. Summers and Robert E. Rubin supported the repeal — which was signed by President Bill Clinton?” (Editorial, “’Always For Less Regulation’?” The Washington Post, 9/19/08)

· The Bill “Was A Widely Accepted Bipartisan Compromise” Even Supported By “Obama’s Running Mate, Joe Biden.” “It’s true that Gramm authored the act, but what became law was a widely accepted bipartisan compromise. The measure passed the House 362 - 57, with 155 Democrats voting for the bill. The Senate passed the bill by a vote of 90 - 8. Among the Democrats voting for the bill: Obama’s running mate, Joe Biden. The bill was signed into law by President Clinton, a Democrat.” (Joe Miller And Brooks Jackson, “Who Caused The Economic Crisis?” FactCheck.org, 10/1/08)

· Joe Biden Voted For The Gramm-Leach-Bliley Financial Modernization Act Of 1999. (S. 900, CQ Vote #354: Adopted 90-8: R 52-1; D 38-7; I 1-0, 11/4/99, Biden Voted Yea)

· Jim Leach – Leader Of “Republicans For Obama” And Speaker At The Democratic National Convention – Was The Co-Author Of The Gramm-Leach-Bliley Act. (S. 900, Signed 11/12/99)

· ; Obama Economic Adviser Secretary Bob Rubin “Worked Very Hard On This” Bill. CLINTON: “But I do want to thank all the members here and all those who aren’t here and I’d like to thank two New Yorkers who aren’t here who have been mentioned — former Secretary of the Treasury Bob Rubin, who worked very hard on this, and former chairman, Senator Al D’Amato, who talked to me about this often.” (President Clinton, Remarks, Washington, D.C., 11/12/99)

· Obama Adviser Larry Summers Was Involved In Negotiating The Gramm-Leach-Bliley Act, And Called It A “Major Step Forward Toward The 21st Century.” “Mr. Summers, the Obama adviser, was among those who negotiated the [1999 Gramm-Leach-Bliley] measure on behalf of the Clinton administration, and he praised it as a ‘major step forward toward the 21st Century.’” (Michael M. Phillips, Elizabeth Holmes and Amy Chozick, “Candidates C all Upon Big Names For Advice,” The Wall Street Journal, 9/18/08)

· President Clinton Signed The Gramm-Leach-Bliley Act Into Law On November 12, 1999 As Public Law No. 106-102. (P.L. No. 106-102)

According To Non-Partisan FactCheck.org, The Act “Had Nothing To Do With Causing The Crisis”

· FactCheck.org: The Act “Had Nothing To Do With Causing The Crisis.” “Gramm’s legislation had broad bipartisan support and was signed into law by President Clinton. Moreove r, the bill had nothing to do with causing the crisis, and economists – not to mention President Clinton – praise it for having softened the crisis.” (Joe Miller And Brooks Jackson, “Who Caused The Economic Crisis?” FactCheck.org, 10/1/08)

· Former President Clinton Said The Enactment Of The Gramm-Leach-Bliley Act Didn’t Have “Anything To Do With The Current Crisis.” Former President Clinton: “But I have really thought about this a lot. I don’t see that signing that bill [the Gramm-Leach-Bliley Act] had anything to do with the current crisis. Indeed, one of the things that has helped stabilize the current situation as much as it has is the purchase of Merrill Lynch by Bank of America, which was much smoother than it would have been if I hadn’t signed that bill.” (Editorial, “Bill V. Barack On Banks,” The Wall Street Journal, 10/1/08)