ECON 319 Chapter Notes - Chapter 4: Robert Rubin, Cultural Capital, Human Capital
9 Feb 2017
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1994 riegle-neal act eliminated restrictions on interstate banking, allowing bank holding companies to acquire banks in any state and allowing banks to open branches in new states. Escalating costs of campaigning has increased the importance of money. Largest commercial investment banks, which stood to gain the most from deregulation, and consolidation, were the largest sources of campaign cash. In 1990s, period of significant fin sector contributions were also the decade when the deregulatory campaign crashed through any remaining opposition. Ability to place key people in washington from wall street. Federal gov became more dependent on people with modern financial experience. This put key regulators in the position to make important decisions affecting wall street, many of which were friendly. Close connections between private and public sectors were also enhanced by longtime gov officials who chose to move to the private sector- revolving door. Most important was robert rubin who went from wall street to washington under.
