You start with a premise, 'control freak', but pro

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Bill Clinton: Glass-Steagall repeal had nothing to do with financial crisis

By Lauren Carroll on Wednesday, August 19th, 2015 at 5:22 p.m.

http://www.politifact.com/truth-o-meter/state...o-financi/

By the time Clinton signed the Financial Services Modernization Act, commonly known as Gramm-Leach-Bliley, repealing the key components of Glass-Steagall in 1999, the regulation was nearly toothless. The law was simply catching up to what the market had already accomplished in the previous 10 to 15 years, said Kathleen Day, a lecturer at Johns Hopkins University and an expert in financial crises.

Take for example the poster child of the end of Glass-Steagall: The merger of Citicorp, a bank, and Travelers Group, a financial conglomerate, was announced in 1998 before Glass-Steagall was repealed. Even though this was the exact type of merger Glass-Steagall was intended to halt, the financial industry did not see many obstacles for the creation of Citigroup.

By focusing on the bill that officially repealed Glass-Steagall, Clinton's statement ignores the fact that the demise of Glass-Steagall took place over decades, amid a deregulatory push in which the Clinton administration played a role. By the time the law to repeal hit his desk, Glass-Steagall had been whittled down so much that it wasn’t very meaningful.

It's a matter of debate how much of a role the overall demise of Glass-Steagall had in causing the financial crisis, but we couldn't find any economists who argue that the regulation was the sole linchpin keeping the financial system stable until its official repeal in 1999. Overall, we rate Clinton’s claim Mostly True.

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