Posted on 01/27/2009 6:45:31 AM PST by TigerLikesRooster
What a crock! Greenberg was adamant about NOT selling CDS instruments until he was forced out. Joseph Cassano is the real villain here, selling billions of dollars in CDSs until the music stopped. Greenberg was the only person stopping the sales.
All of this is going to pass into the received wisdom. It’s why the media is so dangerous - they codify lies.
And Jimmy Carter and the democrat congress that ended red line banking in the 70’s.
He resisted regulation and attempts to get the subprime situation under control on numerous occasions in the early to mid 2000's. He even slept with a Freddie official in the 90's when the suprime market was born.
I was thinking the list should have at least an "Honorable Mention" for a certain former Chicago "community organizer".
ping
In 1999 Clinton repealed the Glass-Steagall Act, which ensured a complete separation between commercial banks, which accept deposits, and investment banks, which invest and take risks. The move prompted the era of the superbank and primed the sub-prime pump. The year before the repeal sub-prime loans were just 5% of all mortgage lending. By the time the credit crunch blew up it was approaching 30%.
Why am I NOT surprised?
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