Next week marks the 10th anniversary of the run on Bear Stearns, the investment bank that collapsed under the weight of toxic subprime mortgages. Although JPMorgan Chase snapped up Bear Stearns for pennies on the dollar, this maneuver failed to stop the bleeding from the mortgage meltdown, leading to the biggest economic crisis in nearly a century.
That seems like a terrible political backdrop for the Senate to pass a bill that deregulates the banking sector. But that’s exactly what’s about to happen.
The Economic Growth, Regulatory Relief and Consumer Protection Act, which pro-regulation groups have called the “Bank Lobbyist Act,” advanced in the Senate this week with the support of 50 Republicans, 16 Democrats, and one Democratic-leaning independent. Bipartisanship, it seems, isn’t dead.
We’re witnessing a familiar swing of the pendulum: toward regulation when banks crash the economy, away from regulation when memories fade. The next…
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