When bankers think they can get away with rampant fraud and get paid very well to do it, they'll do it. Robert Rubin's best defense is that he really isn't all that bright -- he's either an idiot or a criminal.
For a decade, Wall Street was playing funny money games, and many Americans also felt like they were invited to the celebration. We were living in fantasy land, but the fantasy is over and we woke up to a nightmare.
I've been reading Maria Bartiromo's new book, The Weekend That Changed Wall Street. A better title might have been "The Weekend that Changed the World." It was America's chance to bottom out. We didn't.
The political case for appointing Warren is even stronger than the policy case. Choosing anybody other than Warren will not make Obama appear reasonable or moderate--it will make him look weak and corruptible.
J.P. Morgan's Chief Economist James Glassman recently indulged in a vaguely worded assault on financial reform, arguing that Congress is about to ruin the economy by cracking down on Wall Street. Don't believe a word of it.
Washington has tied itself in knots trying to find a way to thwart "too big to fail" without cutting megabanks down to size. It can't be done. When something is too big, the solution is to make it smaller.
Wall Street has long forgotten how to spell "ethical" or "good," and replaced it with "compliant" and "legal."
The time has come to explain to investment banks what their responsibility and accountability are.