Stevens Helped Lay Groundwork For Current Financial CrisisWhile Taking Money From Wall Street, Stevens Opposed Oversight And Accountability For Corporations Anchorage, Alaska – Headlines across the country highlight the troubles of Wall Street and the economy, yet Senator Ted Stevens has been close to Wall Street firms for years. While taking money from Wall Street corporations, Stevens opposed any meaningful Wall Street oversight or accountability. Stevens supported the Financial Modernization Act of 1999, which is largely responsible for the current Wall Street crisis. “Senator Stevens helped lay the groundwork for today’s financial crisis. How unfortunate that Stevens is on trial for seven felony counts related to accepting illegal gifts instead of helping fix this mess,” said Bethany Lesser, spokeswoman for the Alaska Democratic Party. “Stevens supported wealthy Wall Street banking institutions, the insurance industry, and financial services industry at the expense of Alaska. Alaska families are struggling to get by in a troubled economy that is now in the midst of a financial crisis. We need a new direction that demands accountability from Wall Street and enforces oversight.” According to Campaign Money Watch, a nonpartisan campaign finance watchdog group, Stevens has taken more than half a million dollars from Wall Street firms since 1989. Specifically, Campaign Money Watch found that, “Stevens’ received $105,350 from employees and PACs from commercial banks, $207,182 from employees and PACs from insurance companies, and $209,197 from employees and PACs from the securities and investments industry.” While accepting money from Wall Street, Stevens voted in favor of the Financial Modernization Act of 1999 (FMA), which opened the door to the reckless Wall Street gambling that led to this crisis. The Washington Post reported that FMA eroded government oversight of Wall Street, and that FMA “helped pave the way for companies such as AIG and Lehman Brothers to become behemoths laden with bad loans and investments.” [Washington Post, 9/17/08] FMA also repealed the Glass-Steagall Act, which removed the firewall between insurance companies, banks, and investment firms. Stevens is also a proponent of privatizing Social Security, which would have left many Alaskans’ retirement benefits volatile while giving the financial services industry more business. # # # |
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