Frontline’s, “The Warning” Part 6
“Right now [Obama] is deciding how hard to push to regulate the OTC derivative market. The President’s point man, Larry Summers, now says he supports strong regulation of over-the-counter derivatives. And Treasury has released a proposal outlining some of the same ideas Born had 11 years ago. But the financial lobby is still against those ideas and is lobbying hard at the White House and in Congress. The new regulations are stalled. As for Brooksley Born, without new regulations, she’s offering another warning.”
Brooksley Born closes with this comment,
“I think we will have continuing danger from these markets and that we will have repeats of the financial crisis [that] may differ in details but there will be significant financial downturns and disasters 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 Internet.
