Wednesday, May 28, 2008

John McCain advisor Phil Graham still lobbying for banks, but that's not the interesting part...

MSNBC's Keith Olbermann reported on Tuesday on former Senator Phil Graham's role in the deregulation of commercial banking which had been strictly regulated since shortly after the Great Depression, as well as Mr Graham's role as an advisor on national finance issues to the McCain campaign.

Notwithstanding the conflict of interest in having a current lobbyist for UBS Bank as an advisor to the campaign, what is more interesting to your guides is that Senator Graham's efforts towards deregulating the commercial finance system could be a key factor in today's mortgage crisis.

Senator Graham's efforts at deregulation introduced the entire system of mortgage backed securities whereby banks could bundle mortgage instruments with other similar mortgages, and sell them as securities.


wally said...

Phil Graham, a dedicated soldier in Milton Friedmans' "Dark Chicago Ghost "economics idealism, rears its ugly head once again.
Its Graham's legislation, that leads right into our current banking/credit situation. McCain had to really shove his arm into the GOP elephant's rearend to pull out a Phil Graham. This shows McCain is too old, too out touch, to serve as anything but an Arizona senator.