McCain's good buddy Gramm, the Architect for deregulation on Wall Street

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McCain's good buddy Gramm, the Architect for deregulation on Wall Street

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Later in his Senate career, Gramm spearheaded efforts to pass banking reform laws, including the landmark Gramm-Leach-Bliley Act in 1999, which served to reduce government regulations in existence since the Great Depression separating banking, insurance and brokerage activities.

Years later, critics of Gramm point out that this same legislation may have been pivotal in encouraging he corporate practices that led to the 2008 mortgage crises in America.[5]

Between 1995 and 2000 Gramm, who was the chairman of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, received $1,000,914 in campaign contributions from the Securities & Investment industry.[6]

Later, as lobbyist for Swiss bank UBS, Gramm pressured congress ease it's restrictions on predatory lending tactics by mortgage brokers. For his efforts, Gramm received $750,000 from UBS in during a one year period starting in 2007.[7].

John McCain presidential campaign, 2008

He was John McCain’s presidential campaign co-chair[8] and his most senior economic adviser[9] from summer 2007[10] to July 18, 2008.[8]

While advising the McCain campaign, Gramm was being paid by UBS to lobby Congress about the U.S. mortgage crisis. During this time, "the mortgage industry pressed Congress to roll back strong state rules that sought to stem the rise of predatory tactics used by lenders and brokers to place homeowners in high-cost mortgages."[11] According to Politico.com, Gramm had input on McCain's March 26, 2008 policy speech on the mortgage crisis.[11]

In a July 9, 2008 interview explaining McCain's plans in reforming the U.S. economy, Gramm downplayed the idea that the nation was in a recession, stating, "You've heard of mental depression; this is a mental recession," and "We have sort of become a nation of whiners, you just hear this constant whining, complaining about a loss of competitiveness, America in decline."[12]

Gramm's comments immediately became a campaign issue. McCain's opponent, Senator Barack Obama, said, "America already has one Dr. Phil. We don't need another one when it comes to the economy. ... This economic downturn is not in your head."[13] McCain strongly denounced Gramm's comments.[14] Gramm later attempted to clarify his comment, explaining that he had used the word "whiners" to describe the nation's politicians rather than the public, stating "the whiners are the leaders."[15] In the same interview, Gramm stated, "I'm not going to retract any of it. Every word I said was true."[16]

On July 18, 2008 Gramm stepped down from his position with the McCain campaign.[17]

And another famous quote of Phil Gramm:

• "Most people don't have the luxury of living to be 80 years old, so it's hard for me to feel sorry for them." - (in response to a statement that a Social Security proposal would hurt people over 80)[21]

References:

1. ^ "Senators of the United States" pp. 81. Senate Historical Office.
2. ^ Search Results - THOMAS (Library of Congress)
3. ^ Who let the oil market be manipulated? - How the World Works - Salon.com
4. ^ http://www.politico.com/news/stories/0308/9246.html
5. ^ http://www.opensecrets.org/politicians/indus.asp?CID=N00005709&cycle=2000
6. ^ http://www.politico.com/news/stories/0308/9246.html
7. ^ a b John Bentley, "Gramm Steps Down From McCain Campaign", CBS News, 18 July 2008
8. ^ Amity Shlaes, "Phil Gramm Is Right", The Washington Post, 12 July 2008
9. ^ Stein, Sam, "Short On Economic Understanding, McCain Brings Phil Gramm to Meeting", The Huffington Post, 21 January 2008
10. ^ a b McCain guru linked to subprime crisis - Lisa Lerer - Politico.com
11. ^ a b Washington Times - McCain adviser talks of 'mental recession'
12. ^ Associated Press (July 10, 2008), "Obama on Gramm: 'America already has one Dr. Phil'", USA Today, <http://www.usatoday.com/news/politics/election2008/2008-07-10-obama-gramm_N.htm?csp=34> 
13. ^ Gray, Kathleen (2008-07-11). "McCain rejects claim that Americans are 'whiners'", Detroit Free Press. Retrieved on 2008-07-11. 
14. ^ Gramm: We need more leadership, less whining - CNN.com
15. ^ Shear, Michael D. and Weisman, Jonathan (2008-07-11). "Gramm Remark Adds to McCain's Difficulty Addressing the Economy", Washington Post. Retrieved on 2008-07-11. 
16. ^ Woellert, Lorraine (2008-07-18). "Gramm Steps Down as McCain Co-Chair After `Whiners' Remark", Bloomberg L.P.. Retrieved on 2008-07-19. 
17. ^ U.S. Treasury - Wayne Abernathy - Assistant Secretary for Financial Institutions
18. ^ [1]
19. ^ Springfield News-Leader
20. ^ Ivins, Molly (March/April 2002), "The Masters of Mean", Mother Jones, <http://www.motherjones.com/commentary/power_plays/2002/03/mean.html>
21.