Frontline’s “The Warning” Part 3
“By Spring of 1998, the idea of tougher regulation seemed out of step with all the good news. But at Treasury, things were about the change. The carefully calibrated inner-tranquility was being distrubed by a small tremor. It quickly made its way up to Robert Rubin. Brooksley Born was contemplating the regulation of OTC Derivatives. This was a job for Larry Summers. In Washington, they say the financial sector has 5 lobbyists for every Congressman. But the harder they pushed the more interested Born became. Born’s agency was legally independent. She reported to the President. Rubin had no authority over her. To stop her, he would call upon his allies who sat with him on a secretive council known as, ‘The President’s Working Group.’”
Apparently Part 2 of this Frontline Series was removed from the Internet as we haven’t been able to find it. If you missed Part 1, click here
[...] largely left to regulate itself… “ If you missed the former posts, click for Part 1, Part 3, or Part 4 var fbShare = {url: [...]
[...] attributed to this regulatory gap over and over until we learn from experience.” Part 1, Part 3, Part 4 or Part 5. As you know from our prior posts of this Series, Part 2 was removed from the [...]