The Confidential Memo at the Heart of the Global Financial Crisis

DrBuster

Saw this over the weekend. Was this posted already?

http://www.vice.com/en_uk/read/larry-summers-and-the-secret-end-game-memo

jmski52

Getting rid of Glass Steagall was only Step 1, which allowed for mergers such as Citi's takeover of Merrill Lynch, specifically so that Citi could mingle their mortgage lending with retail in order to generate wads of mortgage-based derivatives and then sell them to unsuspecting clients.

Greenspan, Rubin, Corzine and Summers. Remember those names.

derryb

<< <i>Greenspan, Rubin, Corzine and Summers. Remember those names. >>



Yesterday's hero can easily become today's villain once the truth is known. And to think Summers is considered the front runner for Flakey Bernake's job. Got gold?

ricko

There are no hero's in the world of finance... just those who are trying to continue the charade while lining their own coffers.... Cheers, RickO

yellowkid

<< <i>Getting rid of Glass Steagall was only Step 1, which allowed for mergers such as Citi's takeover of Merrill Lynch, specifically so that Citi could mingle their mortgage lending with retail in order to generate wads of mortgage-based derivatives and then sell them to unsuspecting clients.

Greenspan, Rubin, Corzine and Summers. Remember those names. >>



Our "best and brightest" used to design and build great things, now they go to grad school to learn how to finesse the money system. If it goes bad for them, they incur no penalty, in fact many are rewarded. You and I take it up the keister.

mrpaseo

<< <i>There are no hero's in the world of finance... just those who are trying to continue the charade while lining their own coffers.... Cheers, RickO >>



Amen brother.

7over8

<< <i>Getting rid of Glass Steagall was only Step 1, which allowed for mergers such as Citi's takeover of Merrill Lynch >>



Citi didn't acquire Merrill, Bank of America did.

jmski52

Citi didn't acquire Merrill, Bank of America did.

I think you're correct. But I'm thinking that Citi also used the opportunity to do something similar. Was it Smith Barney? I need to research it.

Ah, Wikipedia is your friend. Citi merged with Travelers, who had swallowed Smith Barney and Salomon Brothers. It was this deal, as I recall that began the series of consolidations in the financial industry that led to the securitization and abuse of mortgage-backed derivatives.

cohodk

The abuse came from mortgage underwriters, appraisers and real estate brokers. Secondary responsibility falls to the media, politicians and banks.

derryb

<< <i>The abuse came from mortgage underwriters, appraisers and real estate brokers. Secondary responsibility falls to the media, politicians and banks. >>


Jail them all and let prison population sort them out.

I believe there's a pretty strong case that the abuse was designed and fully enabled by those that control the lawmakers and regulators - the banking lobby. Otherwise Glass Stegall would continue to keep banks from becoming gambling houses and a very insightful former CFTC Chairwoman would have convinced Congress, over the objections of Rubin, Summers and Greenspan, that derivative regulation was necessary. Money has and continues to overrule decency and common sense where policy makers are concerned.

Our modern economic and financial failures are not an accident. They were carefully engineered and executed by those that continue to benefit from the greatest transfer of wealth (and taxpayer dollars) in the history of mankind. Those that believe it will change without a complete flushing of the system need to keep stacking dollars.

Like anything else, "Follow the Money."

cohodk

Jail them all and let prison population sort them out.

That works for me.