Posted on 02/22/2009 7:32:15 PM PST by Jim Robinson
Upon Rubin's retirement, Clinton called him the "greatest secretary of the Treasury since Alexander Hamilton." "During his tenure as Treasury Secretary," Senator Chuck Hagel (R-NE) said, "Bob was an ideal public servant who put policy before politics." [8][dead link]
In 1997, together with then-Federal Reserve chairman Alan Greenspan, Rubin strongly opposed the regulation of derivatives, when such regulation was proposed by then-head of the Commodity Futures Trading Commission (CFTC), Brooksley Born. Overexposure to credit derivatives of mortgage-backed securities was a key reason for the failure of US financial institutions Bear Stearns, Lehman Brothers, Merrill Lynch, American International Group, and Washington Mutual in 2008.
Arthur Levitt Jr., a former chairman of the Securities and Exchange Commission, has said in explaining Rubin's strong opposition to the regulations proposed by Born that Greenspan and Rubin were "joined at the hip on this." "They were certainly very fiercely opposed to this and persuaded me that this would cause chaos." [9] However, in Mr. Rubin’s autobiography, he notes that he believed derivatives could pose significant problems and that many people who used derivatives didn’t fully understand the risks they were taking. [10]
According to the New York Times, "In November 1999, senior regulators—including Mr. Greenspan and Mr. Rubin—recommended that Congress permanently strip the CFTC of regulatory authority over derivatives."[9] This advice was accepted and derivatives were kept clear of regulation by the CFTC.
On 9 January 2009, Citigroup said that Robert Rubin had resigned as a senior adviser and would not seek re-election as a board director. [11] Press reports noted that Rubin had drawn criticism for his role in the bank's recent problems that drove it to seek federal assistance.[12]
Derivatives? ... How about calling them ‘contrivatives’?
An oxymoron at best.
Tell the CITI stockholders.
He’s a criminal and should be behind bars.
“During his tenure as Treasury Secretary,” Senator Chuck Hagel (R-NE) said, “Bob was an ideal public servant who put policy before politics”
RINO Hagel never ceases to amaze.
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