(2011-0299-S Segment 2) Bruce Reed - Chronological Files Series - Domestic Policy Council

The materials in FOIA 2013-0181-F are a selective body of documents responsive to the topic of the FOIA. Researchers should consult the archivist about related materials. The Clinton Administration witnessed a number of financial developments that loosened banking restrictions and culminated with the repeal of the Glass-Steagall Act in 1999. President Clinton played a key role in this series of events, making several public statements which hinted at the impending demise of the legislation. At one point, he said “the Glass-Steagall law is no longer appropriate.” Passed in 1933 at the height of the Great Depression, the bill (part of the U.S. Banking Act) contained four major provisions aimed at separating commercial and investment banking. By the time of its overturning, the Glass-Steagall Act had been severely undermined by interpretations set forth by Federal Reserve Board. For instance, in 1998 it allowed Citibank to become affiliated with Salomon Smith Barney, a major US security firm. Finally, in 1999 Congress passed the Gramm-Leach-Bliley Act (GLBA) which effectively gutted the Glass-Steagall Act by doing away with the provisions of the bill preventing affiliations between banks and securities firms. Also known as the Financial Services Modernization Act of 1999, the Gramm-Leach-Bliley Act set in motion a series of mergers and acquisitions extending on into the 21st century and the presidencies of George W. Bush and Barack Obama. The two most important mergers that occurred during the Clinton Administration were Travelers Group combining with Citicorp and NationsBank uniting with BankAmerica. Sanford Weill and Hugh McColl, Jr. (both bankers) respectively engineered these mergers. White House Office of Records Management (WHORM)-Alpha File contains correspondence, memoranda, drafts, notes, and faxes. There are letters to and from Hugh McColl, Jr. and Sanford Weill concerning a tie sent to President Clinton as a gift, requesting Hillary Clinton to speak at an awards luncheon, asking for the President’s participation in a week of Habitat for Humanity events in Charlotte, and expressing condolence at the death of a family member. The charitable works of the two bankers seem to be emphasized in the records, with McColl declaring Clinton should give strong consideration to coming to North Carolina “to drive a couple of nails and to lift the spirits of both workers and future homeowners not only here in Charlotte, but across the nation.” White House Office of Records Management (WHORM)-Subject File contains correspondence, lists, notes, resumes, memoranda, newspaper articles, drafts, press releases, and forms dealing in some shape or fashion with McColl, Weill, and a number of additional bankers. A form letter thanks Weill for his participation in the White House Conference on Corporate Citizenship. An invitation from McColl requests Clinton to give an address at the Bankers Roundtable to be held in Washington, D.C. in September 1994. Dennis Weatherstone, Chairman of the Board of J.P. Morgan and Company, receives a letter of appreciation from the Chief Executive thanking him for his support of NAFTA (North American Free Trade Agreement). Thomas Labrecque, Chairman of the Chase Manhattan Corporation, gets a form letter asking for him to become involved “in our bold National Service initiative.” Candidates for positions on the President’s Export Council have their basic information set forth on a “Candidate Information Summary.” Clinton appointed Weill to the President’s Export Council in May 2000. White House Staff and Office files of relevance include correspondence, faxes, publications, memoranda, transcripts, speeches, briefing papers, newspaper articles, forms, and emails. In the records of the National Economic Council, perhaps the most important material would revolve around the announcement of a legislative proposal designed to meet the fundamental banking needs of many urban and rural communities across the country. On July 14, 1993, President Clinton and Vice President Gore, held a ceremony on the South Lawn of the White House during which they outlined the provisions of the CDFI (Community Development Financial Institutions) Act and described major changes in the CRA (Community Reinvestment Act). The involvement of banking institutions in these reforms called for a representative from that sector of the economy. Hence the participation of Hugh McColl, Jr., CEO of Nation’s Bank, in the declaration of the initiative.