SOCI 1F90 Lecture Notes - Lecture 9: Gramm–Leach–Bliley Act, Bank Of America Home Loans, Investment Banking
16 Sep 2016
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Inside job: global financial crisis of 2008. Who benefits and who is harmed: unemployment tripled in 6 months. 2000: deregulation policy by allowing multinational corporation to build factories and destroyed the environment. Deregulation: government privatized 3 of the major banks, these banks borrowed 100 billion$ and kept the money for themselves families and friends. Billionaire took a billion dollar loan to buy franchises and a yacht, and jet and manhattan penthouse. End of 2008: banks collapsed and unemployment tripled, it affected everyone. The bankers were supposed to protect their savings and rights but they didn"t. 1/3rd of iceland"s financial regulators went to work for the banks. The regulators didn"t do their job, they had the power they just didn"t want to . September 15, 2008: leman brothers and iag went bankrupt and started an economic crisis, the result was a global recession, 30 million people unemployed and tripled the debt of the us, it wasn"t an accident.
