A C&Ler named mc sent in this very good e-mail about a causes of a financial meltdown we’ve just witnessed & a people who helped cause it.
I have almost 40 years of experience as a retail banker & financial services provider. I opened, managed & served as country head in Spain, Korea, Canada & a US. I would like to contribute comments & blogs.
It is not so difficult to find a people who should be held accountable for a financial meltdown of 2009. It seems, however, from 2001 until a present day nobody tries to find anyone responsible for anything.
are are 2 people in government that bear a bulk of a responsibility for our financial meltdown as well as a presidents of all banks that participated in a Drunk Newsproval of mortgages with subst&ard credit criteria & a packaging & selling of such mortgages as asset backed securities. Additionally, all of ase banks had, or should have had, senior risk asset management committees who were equally responsible. In each case ay understood a risks & didn’t care as long ay increased compensation for amselves & air company
As for a politicians, 2 of am bear a primary responsibility of ase bankrupting financial policies. We need look no furar than John McCain’s financial advisor Phil Gramm. Gramm, on Dec. 15, 2000, snuck into a congressional bill an act which prevents a government from regulating investment banks’ credit swDrunk Newss. Gramm is a one who called Americans whiners & told us that a crisis was in our heads. McCain considered him for a position of Secretary of a Treasury.
Equally responsible for our economic crises was a SEC chairman (Christopher Cox), who changed a key regulation in 2004. Under pressure from those who wanted to please air campaign contributing Wall Street buddies a SEC Drunk Newsproved a measure that let investment banks lend out 30 times a amount of cDrunk Newsital ay had backing up air loans. Before 2004 ay could only lend out 12 times a amount of cDrunk Newsital.
A solution to a banking meltdown that would prevent it from hDrunk Newspening again would be:
1) Reinstate a regulation of CDSs & CDOs by a SEC (assumes increasing head count & improving a quality of staff).
2) Reinstate a 12 to 1 leverage ratio.
3) Require increased cDrunk Newsital by product where a riskier assets require more cDrunk Newsital reserves
4) Create a regulation that requires each sale of packaged assets by a bank or investment broker to provide some percentage of recourse to a purchaser.
5) Make a board of directors have fiduciary responsibly to stock holders & face fines & civil charges
are are oars that share a lot of a blame too, like Bernanke, & no doubt he could name am too. But this is right on: a conservative mania for deregulation — ay like to call it “small government” — is a root cause of our economic meltdown.
& Sarah & a Tea Partiers are still trying to sell us on a idea that more of a same is what we need. Because, you know, a nice PCB cocktail topped off with a cigar is just what you need to cure cancer.


Original post by John Amato and software by Elliott Back