What Geithner does not want the public to understand, his ‘dirty little secret’ is that the repeal of Glass-Steagall and the passage of the Commodity Futures Modernization Act in 2000 allowed the creation of a tiny handful of banks that would virtually monopolize key parts of the global ‘off-balance sheet’ or Over-The-Counter derivatives issuance.
Filed in Creative-i on Capitalism
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Also tagged AIG, Bank of America, citigroup, credit default swaps, financial derivatives, Glass-Steagall Act, Goldman Sachs, JPMorgan Chase, Larry Summers, Merrill Lynch, PPPIP, Tim Geithner
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Larry Summers is the man directly responsible for the mess. As Clinton Treasury Secretary from 1999-January 2001 he shaped and pushed the financial deregulation that unleashed the present crisis. He was Treasury Secretary after July 1999 when his boss, Robert Rubin left to become Vice Chairman of Citigroup, where Rubin went on to advance the colossal agenda of deregulated finance directly.
Not one of the 23 Senators and 133 House Representatives who voted against the war in Iraq are on his transitional team or even on a short-list for an important post in his Cabinet.
Obama can no more succeed than John McCain in resolving the contradictions of capital by feeding the beast the last remnants of the national wealth.
Filed in Creative-i on Capitalism, Creative-i’s Featured Writer
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Also tagged bailout, cash for trash, citigroup, Congressional Black Caucus, derivatives, Goldman Sachs, Lawrence Summers, McCain, obama, Paulson
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What’s clear from the behavior of European financial markets over the past two weeks is that the dramatic stories of financial meltdown and panic are deliberately being used by certain influential factions in and outside the EU to shape the future face of global banking in the wake of the US sub-prime and Asset-Backed Security (ABS) debacle.
Filed in Creative-i on Capitalism, Creative-i’s Featured Writer
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Also tagged ABS, AIG, Alistair Darling, American Century, Asset Backed Securitization, Barclays Plc, Bundesbank, citigroup, Council on Foreign Relations, Crony Capitalism, EU, financialization, germany, Goldman Sachs, Henry Paulson, JP Morgan Chase, Lehman, Merkel, nationalization, Royal Bank of Scotland Group Plc, uk, wall street
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