Comments on: Can crisis inquiry live up to 1930s? http://blogs.reuters.com/breakingviews/2010/01/14/can-crisis-inquiry-live-up-to-1930s/ Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: southwerk http://blogs.reuters.com/breakingviews/2010/01/14/can-crisis-inquiry-live-up-to-1930s/comment-page-1/#comment-1594 Thu, 14 Jan 2010 23:46:28 +0000 http://blogs.reuters.com/columns/?p=2179#comment-1594 Phil Angelides is the Chairman of the Financial Crisis Commission. Yesterday during testimony he said this to Lloyd Blankfein, the CEO of Goldman Sachs.

“I’m just going to be blunt with you,” he told Blankfein. “It sounds to me a little bit like selling a car with faulty brakes and then buying an insurance policy on the buyer of those cars. It doesn’t seem to me that that’s a practice that inspires confidence in the market.”

(What the company was doing is explained in a McClatchy news article. Most simply it was a set of investments in which the contract created a situation that if the investements prospered, Goldman Sachs made money, but if the investments went sour, Goldman Sachs made even more money. The investor bore all the risk.)

For so much of the time after this unprecedented story of financial incompetence, greed and outright stupidity, public officials have said little but given much to the financial industry. Here is a different voice. Whether in the long term this proves sincere is still a question. But I liked the sound of it. Ethics tends to work well in an environment in which there are penalties for doing wrong. The wrong doers have profited from their actions. This is not the kind of example a country and developing civilization need. It is in fact quite dangerous when a large group of powerful Americans no longer share common interests or abide by the same rules as other Americans.

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By: csodak http://blogs.reuters.com/breakingviews/2010/01/14/can-crisis-inquiry-live-up-to-1930s/comment-page-1/#comment-1591 Thu, 14 Jan 2010 18:51:32 +0000 http://blogs.reuters.com/columns/?p=2179#comment-1591 I did listen to Vice Chairman Bill Thompsons opening remarks and a few of his follow-up questions. He has either been bought by wall street or isn’t competent enough to carry out his duties as a member of the Financial Crises Inquiry Commission. We can only hope that the remaining members are not only competent but ethical and tenacious enough to uncover the truth, recommend where prosecutory measures should be executed and recommend immediate measures that should be taken to remove wall streets stranglehold on America’s ability to produce products that American and world consumers require, not the paper ponzi scheme that wall street created and then sold to the world investors.

One of the nankers stated that they could not foresee the coming crisis. Why then did they earnestly lay off their risk to the citizens and governments of the world?

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