There is a new powerful voice who knows how big banks really work and who is willing to tell the truth in great and convincing detail. Jeff Connaughton has just published a page-turning memoir that is also a damning critique of how Wall Street operates.
Given the massive bailouts the industry scored in 2008-9, and how easy policy-makers have been on them, the arrogance and hubris of talking about Soviet style government is pretty amazing. But then that fits quite well with Romney and Ryan, too.
While the repeal of Glass-Steagall was certainly a part of making our system fragile to the point where it is at today, thinking that a simple solution like breaking up the banks will be the panacea that we seek is incredibly naïve.
Sandy Weill's Citigroup engaged in fraud on a massive scale, unfettered risk taking and then needed a massive taxpayer bailout during the 2008 financial crisis because it was so big it couldn't be managed. Yet only now does Weill say it was all a mistake.
Sandy Weill has finally seen the light. It's a bit late in the day, but, hey, he's already cashed in. You and I and millions of others in the United States and elsewhere around the world are still paying the price.
I am incensed that no CEO of a major corporation who is alleged to have contributed to the Great Recession has been pursued criminally. All of us have read and heard the phrase, "Too big to fail." I have suggested an add-on: "Too big to jail."
The banking lobby misrepresents the situation in two ways. First, they foster the belief that the economy needs lower rates to 'get going.' Second, the banking lobby likes to pretend that there is no alternative.