Another Banking & Brokers Crisis: Can't Learn If Can't Remember.

In 1999 during Clinton's tenure of office The Glass-Steagal Act (a.k.a. Banking Act of 1935) was repealed by the republican controlled Congress . The repeal was pushed by Federal Reserve Chairman Alan Greenspan and Citigroup's Chairman Sandy Weil, Secretary Of Treasury Robert Rubin who left government after Glass-Steagall repeal and joined Citigroup and Bill Clinton. The repeal let banks back into the brokerage business. Let Citigroup back into the securities business is an understatement. It was Citigroup's Smith Barney's unit that was part of the fraud at Worldcom that cost investors $ 150 billion in losses. It seems that Sandy and Robert and Smith Barney anaylist Jack Grubman just can't play it straight. The three should have gone to prison.

Banks by nature should be safe and secure. Brokers by nature are anything but safe and secure.Citigroups stock since reentering the brokerage and related security dealings has plunged from $56.00 per share to $19.00. Today Bear Stearns collapsed from a 14 month high of $170.00 per share and was acquired by JP Morgan Chase for $ 2.00 per share. Hello? Anyone remember why the depression-era banking reform legislation happened? What was dumb and risky for the banks in the 1920's and 1930's is still dumb and risky.

Also " Character is fate", acording to the 6th century B.C. Greek philosopher Heraclitus. That hasn't changed either.