The whole question of "blame" itself is an ex post facto exercise...It would be OT here, but the whole repealing of Glass Seagall was done, when it was, with solid rationale...The explanation would be long and waaay OT here, but it was arguably one big reason for the massive reduction in the cost of capital in the US for 2 decades thereafter..Which in turn spawned the hi-tech era and a generation of prosperity...komal wrote:The initial curtailment of Glass Steagall happend under Ronald Wilson Reagan (who dedicated a space shuttle to the ISI sponsored 'freedom fighters'). The final repeal was called the Graham Leach Biley Act (all Rebublicans).
To blame it all on Bill Clinton is not only a lie but plays into the the hands of those who were generous with our tax dollars to the ISI
Today, in the aftermath of the crisis, regulators and law makers are not reversing the clock, but finetuning it...In the new world, pure-play investment banks have voluntarily become "commercial banks" (instead of commercial banks being forced to hive off their investment banks), but are simultaeneously having to hive off their more risky trading activities out of their banking core...
The lessons from this is symptomatic of most paradigms - they need to be constantly modified to keep pace with the times..
In the Indian context, a lesson that can be derived is almost tautological - 20th century, in some cases 19th century laws cannot take care of 21st century issues....the Land Acquisition law, the Police Act are all examples of that....Similarly, Lokpal arguably would not be required if the CBI Act gave sufficient powers to CBI and built safeguards around its independence...
Having said that, it is illustrative to go through the relevant legislations in other countries - of anti-corruption Ombudsmen...Mostly in Europe - I had given some linkes some time back...By all accounts, the Lokpal Bill as it is today is pretty much in line with the European legislations...