Thursday, October 9, 2008
Villains and a Heroine
Today's Times has an article on Greenspan's role in the crisis, focusing on his rabid opposition to any regulation of derivatives. Along with Rubin and Summers, he shut down the attempt by Brooksley Born at the CFTC to do something. In retrospect, Rubin claims he wanted to regulate derivatives, but failed to do so because "the industry certainly didn't want any increase in these requirements. There was no potential for mobilizing public opposition." That's leadership, Bob! And Summers called Born and told her that trying to regulate would cause a financial crisis. When Congress finally made it official with Gramm taking the lead - as has been pointed out often-- the fix was already in, thanks to Rubin, Summers and Greenspan. Bipartisanship! An Obama administration should hire Brooksley Born and shun Summers and Rubin like the plague. For shame!