FDR's 1933 Glass-Steagall bank act created the FDIC and prohibited lending institutions from owning other financial-instrument organizations, which included a ban on assuming iffy mortgages spinning around the Wall Street merry-go-round.

CEO's applied pressure upon Congress, and on November 12, 1999, President Clinton signed the veto-proof legislation that repealed the Glass-Steagall bank act. Republican Senator Phil Gramm was the main sponsor of the bill-the banks then began to branch out into wild speculation. Banks, insurance firms, mortgage companies, mutual fund groups, etc., could all now own each other.The rest is history.


I'm under the impression that no one inside these mega firms has any idea just what each firm owns, and what the actual contractual obligations are...to cope with this sordid mess, Bush is essentially transferring his executive authority over to Treasury Secretary Paulson, who will have absolute power over the details of the "bailout"(?)....Paulson is our new President.