Spitzer: How Wall Street Is Like Penn State
The week's carnage on the Wall Street fraud front: LIBOR investigations ensnare almost all the major banks—estimates of damages of more than $20 billion are front page news. JPMorgan Chase now says its London derivatives trades cost nearly $6 billion in losses, and were a major failing in oversight and management. HSBC admits major failures permitting large-scale money laundering. Wells Fargo admits it discriminated in issuance of mortgages, charging minorities more than it should have. And this is just one week.
And how does Wall Street respond? By refusing to admit there's a problem, by clinging to power, and by frantically dodging blame. What to make of all of this?
Wall Street has the same mentality as the Penn State leadership: Brush things aside, ignore first principles, avoid the tough ethical choices, go for the short-term money and profit. That has been corrosive to the ethic of our economy and the trust that should undergird our financial sector.
We need a fresh start—new leaders, since the current crop has failed. Just as we every now and again vote out the entire political leadership, now is a good time to say to the folks on Wall Street: Bring in a new team.
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http://www.slate.com/blogs/spitzer/2012/07/13/libor_and_jp_morgan_how_wall_street_is_like_penn_state_.html
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It would be nice to have a new team, but what we really need is more regulation. I think this is pretty obvious; every time we talk about it, Wall Street starts spouting off on how they can regulate themselves and everything will be just fine.
Oh, sure.
but I'm not at all sure it would. Current gang in Wall Street has the ears (and other parts; sorry) of current regulators, and without BIG personnel changes, as well as more regulation, nothing will change, imo.
After all, Geithner informed the NY Fed about what was going on WHEN? in '08? presumably expecting something would be done. NADA.
on this matter. Some years ago a Fox news pundit quoted that "Spitzer is like kryptonite for Wall Street."
