jpete wrote:Stockingfull, the "legislation after a scandal" you're talking about was called "Glass-Steagal" and it was working pretty well until Congress screwed it up by pandering to the poverty pimps and passed Gramm-Leach. The same Congress who passed the HMO Act. And the same Congress you think will fix the problem. Asking Congress to fix anything is like playing Russian Roulette with one empty chamber.
Here's what "Investopedia (a Forbes Digital Company)" said about them:
The limitations of the Glass-Steagall Act on the banking sector sparked a debate over how much restriction is healthy for the industry. Many argued that allowing banks to diversify in moderation offers the banking industry the potential to reduce risk, so the restrictions of the GSA could have actually had an adverse effect, making the banking industry riskier rather than safer. Furthermore, big banks of the post-Enron market are likely to be more transparent, lessening the possibility of assuming too much risk or masking unsound investment decisions. As such, reputation has come to mean everything in today's market, and that could be enough to motivate banks to regulate themselves.
Consequently, to the delight of many in the banking industry (not everyone, however, was happy), in November of 1999 Congress repealed the GSA with the establishment of the Gramm-Leach-Bliley Act, which eliminated the GSA restrictions against affiliations between commercial and investment banks. Furthermore, the Gramm-Leach-Bliley Act allows banking institutions to provide a broader range of services, including underwriting and other dealing activities.
Two points, Jeff. First, the description of "self-regulating" banks concerned about their "reputations" sounds pretty quaint at this point in time, doesn't it? Second, where do you get off claiming that "poverty pimps" changed the law, when it pretty obviously was Phil Gramm and his merry band of dereg-meisters who started this train wreck?
In any event, Congress is always being pushed toward de-regulation by Republicans (who controlled both Houses when G-L-B was passed), then back toward regulatory frameworks when the inevitable abuses surface, as they just did last fall. To say that, because they haven't always gotten it right, they should stop trying, makes absolutely no sense. These guys are elected officials; if they don't do the right thing, we replace them with people who stand for a different approach. That's what just happened in November.
And that's why healthcare will be restructured. This year.