Robert Rubin was calling for reform of Glass-Stegall at least as early as 1995. Clinton People wanted the repeal as well and didn't just meander into it.
Monday, May 1 1995
"Rubin calls for modernization through reform of Glass-Steagall Act."
"Robert E. Rubin, secretary of the Treasury, recommended that Congress pass legislation to reform or repeal the Glass-Steagall Act of 1933 to modernize the country's financial system. In testimony before the House Committee on Banking and Financial Services, Rubin said Clinton administration proposals, would permit affiliations between banks and other financial services companies, such as securities firms and insurance companies...
Rubin said Glass-Steagall imposed unnecessary costs and made providing financial services less efficient and more costly. He said the act can "conceivably impede safety and soundness by limiting revenue diversification."..
Rubin said bills introduced in the House and the Senate to modernize the financial services system were highly constructive, although somewhat different from the Clinton administration's recommendations, and that a bipartisan effort could yield significant results this year."
http://www.allbusiness.com/government/business-regulations/500983-1.html
Also from 1999 the Times ran an article about relaxed subprime mortgages that might become a problem in the future:
"Fannie Mae Eases Credit To Aid Mortgage Lending"
September 30, 1999
"In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.
''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.' "
