Frontline, “The Warning” Part 5
There are a significant amount of commercials in this video, so you can fast forward from 3:43 through 7:10.
“Banks were pressured to bail out LTCM themselves. It worked. The crisis passed. In Washington, a collective sigh of relief. And then, a call to action. Some in Congress began to clamor for regulation. But Alan Greenspan had no intention of yielding. In the end, Congress agreed with Alan Greenspan. There would be no new regulations of over-the-counter derivatives. But within the next few weeks, Congress did decide to do something about Brooksley Born; they stopped her entirely. Born resigned. With Born out of the way, the last two years of the Clinton Administration were a hay-day of deregulation. OTC derivatives were off limits. Banks were freed to make riskier investments. Wall Street was largely left to regulate itself… “
If you missed the former posts, click for Part 1, Part 3, or Part 4. As you know from our prior posts of this Series, Part 2 was removed from the Internet.
