asterisk2a + robertrubin   7

Wall Streets Euthanasia of Industry | Michael Hudson
Last weekend’s New York Times magazine had an interview with Sheila Bair, whose five-year term heading the Federal Deposit Insurance Corp. (FDIC) expired last week. Now she can begin to tell what happened. She said that Mr. Obama promised her that he would try to prevent the mortgage frauds that were occurring, especially in subprime mortgages, and support better bank regulation. But then she would learn, just an hour before he gave a speech, that he would have changed the draft that she had seen, and took out what he’d promised her. The rewrites apparently were done mainly by Tim Geithner, who acts as a lobby for the big bank contributors. Instead of running the Treasury to benefit the U.S. economy, he’s benefiting his Wall Street constituency. Significantly, he was a protégé of Clinton Treasury Secretary Robert Rubin, who gave the name “Rubinomics” to pro-Wall Street opposition to bank regulation and a dismantling of public control over the banking system.
sheilabair  lobby  lobbyist  Lobbying  timgeithner  robertrubin  larrysummers  greenspan  Dodd-Frank  subprime  regulation  reform  wallstreet  presidency  barackobama  oligopol  pharma  industry 
july 2011 by asterisk2a
Pension Pulse: Rottenness of the World?
On that gloomy note, I leave you by recommending Joe Nocera's New York Times article, Sheila Bair’s Bank Shot. Like Brooksley Born, Ms. Bair tried to do the right thing but she realized her efforts are futile. The reality is that no matter what measures regulators implement to reign in banks, the rottenness of the world always prevails.
society  culture  inequality  wallstreet  lobby  lobbyist  Lobbying  interestgroups  money  power  politics  accountability  fraud  taxevasion  capitalism  corporate  crisis  sovereign  debt  GFC  sheilabair  brooksleyborn  larrysummers  greenspan  robertrubin  policy  folly 
july 2011 by asterisk2a
Blaming Rubin | Analysis & Opinion |
When he was in the Clinton administration, Rubin thought that absent a crisis, it would be politically impossible to pass new rules because of the intensity of the opposition from his former colleagues on Wall Street. He also faced disagreement from Fed Chairman Alan Greenspan, who believed that markets were essentially self-regulating, and some skepticism from his own deputy at Treasury, Larry Summers. Rubin goes into this at length in his book, noting that Summers later ridiculed the kind of comprehensive margin requirements Rubin favored as “playing tennis with wooden rackets.” The three did agree, however, that a legally ambiguous effort by the Commodity Futures Trading Corp., then led by Brooksley Born, to regulate over-the-counter derivatives could have created dangerous market uncertainty.
robertrubin  hypocrisy  hypocrite  alangreenspan  larrysummers  regulation  reform  derivatives  billclinton 
may 2010 by asterisk2a
Clinton Calls Advice He Got on Derivatives ‘Wrong’ (Update1) - Bloomberg.com
April 19 (Bloomberg) -- Former President Bill Clinton said his Treasury Secretaries Robert Rubin and Lawrence Summers were wrong in the advice they gave him about regulating derivatives when he was in office.

“I think they were wrong and I think I was wrong to take” their advice, Clinton said in an interview on ABC’s “This Week” program broadcast yesterday.

Their argument was that derivatives didn’t need transparency because they were “expensive and sophisticated and only a handful of people will buy them and they don’t need any extra protection,” Clinton said. “The flaw in that argument was that first of all, sometimes people with a lot of money make stupid decisions and make it without transparency.”

“Even if less than 1 percent of the total investment community is involved in derivative exchanges, so much money was involved that if they went bad, they could affect 100 percent of the investments,” Clinton said.
billclinton  larrysummers  robertrubin  derivatives  warrenbuffet  Lobbying  lobby  lobbyist  Fed  alangreenspan  GSE  mortage  housing  bubble  fanniemae  freddiemac 
april 2010 by asterisk2a
The Reckoning - Citigroup Saw No Red Flags Even as It Made Bolder Bets - Series - NYTimes.com
The bank’s downfall was years in the making and involved many in its hierarchy, particularly Mr. Prince and Robert E. Rubin, an influential director and senior adviser.

Citigroup insiders and analysts say that Mr. Prince and Mr. Rubin played pivotal roles in the bank’s current woes, by drafting and blessing a strategy that involved taking greater trading risks to expand its business and reap higher profits. Mr. Prince and Mr. Rubin both declined to comment for this article.

-- with hindsight -- these people were the architects of this crisis.
Summers and Greenspan and Rubin were part of the Clinton administration, and Bush partly too.
citigroup  MBS  robertrubin  fed  treasury  billclinton  administration  history  housing  bubble  architect  bailout  CDO  housemarket  barackobama  larrysummers  timgeithner  alangreenspan 
december 2009 by asterisk2a

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