Thursday, October 18, 2012

Law Professor Michael Greenberger: Americans Want the Financial Sector Cleaned Up

Law Professor Michael Greenberger:

On politicians' cozy relationship with wall street: Politicians are looking to Wall Street to fund their campaigns. Wall Street political contributions are a minute cost of doing business for them, but it means everything for the politicians. This is true for Republicans and Democrats.

How crony capitalism has worked out for Barack Obama: Being nice to Wall Street has not worked out for Obama. You can in no way gear regulatory philosophy to satisfy Wall Street.

Whether a president could be elected if he or she committed to clean up the financial sector: American people, on the left and the right, are instinctively angry at Wall Street - as we have seen with the Tea Party and the Occupy movements. They don't know exactly why because the president has not explained to them how they have been beaten up. It would be easy for a leader to be elected if he or she would commit to cleaning up the financial sector. Romney wants to tear down all barriers, and Obama wants to keep a few barriers in place. Obama completely missed the boat on this. He had an opportunity and missed it.

Jaime Falcon's comment: It's not just Americans who want to see some accountability in the financial sector. The entire world is affected by the fraud and corruption that has not been addressed. Sophisticated investors know full well that there is a lot that cannot be trusted in this country. Bank balance sheets no longer reflect asset values. Credit rating agencies are conflicted and corrupt. And the people who brought our financial system to its knees are still in positions of power and influence. Leaving fraud-friendly structures in place and not pursuing individuals who commit fraud sends a clear message to investors: Your money may not be as safe as it appears to be.

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