Yet another hearing, yet more denials and refusal to accept any responsibility in the Financial crisis.
I'm sick to death of this frankly and say, put them in jail and be done with it. If one cannot put them in jail, pass laws to do so with ease and be done with it.
I also propose bloggers put together a financial reform bill, all publish it on their blogs, and demand Congress pass it. It seems every one monitoring these events knows exactly what to do (including break up the big banks), except our Government.
Seriously, is anyone else sick to death of Congressional continual pussy footin' around? An admonishment here, a scolding there, in some obscure hearing on capital hill? No consequences, no concrete changes in law, no real action. All hat, no cattle, pomp and circumstance.
With that, Dylan Ratigan did a segment, which sums up what's really going on with financial reform.
Here is Goldman Sachs denying they bet against clients:
Goldman has just issued an eight page letter to shareholders, in which it tries to defend itself against its critics, particularly regarding its conduct vis-a-vis AIG, with how it got short the residential mortgage market, and its compensation.
To be more terse than usual: the AIG argument is generally plausible (and not inconsistent with what Tom Adams’ analysis has found), the other two are problematic. to put it politely.
Here is Alan Greenspan denying his role or a too low Federal Funds rate in the financial crisis:
Here is former Fed Chair Greenspan claiming retrospect is useless and that he has a C- grade average during his Federal Reserve Tenure:
Here is Citigroup blaming the statistics (the I.T. geek blew up my computer! Offshore outsource those guys!)
Bankers told the panel yesterday they relied on statistical models that failed to predict the severity of the crisis.
Charles Prince, former Citigroup CEO, ran the dog ate my homework line, along with a nice apology (which of course he would never give back his executive compensation to back up his feelings of regret):
It's pretty astounding a corporation was creating products, selling products and then when those structured credit default obligations blew up, turn around and claim they just didn't understand them.
After all, Robert Rubin at least,lobbied heavily to get regulations dismantled which enabled these Banksters to create these glorified gambling casino products. To wit:
Richard Bowen, who was business chief underwriter during his time at Citigroup, said he warned executive committee chairman Robert Rubin about the destructive practices occurring in the company's mortgage arm.
Bowen said he discovered in 2006 that "60 percent of the mortgages bought and resold by the company were defective," meaning they were not up to Citi's guidelines.
When asked how Rubin responded, Bowen said, "I received a very brief phone call from a general counsel within the company. He said they were doing background research and didn't need to talk to me."
In mid-2006 I discovered that over 60% of these mortgages purchased and sold were defective.
Because Citi had given reps and warrants to the investors that the mortgages were not defective, the investors could force Citi to repurchase many billions of dollars of these defective assets.
This situation represented a large potential risk to the shareholders of Citigroup.
C-SPAN has all of the video here.