I wouldn't go that far...
But I can see why McCain would like to keep this bit of history in the past as well.
Posted on 07/02/2008 6:03:34 PM PDT by TigerLikesRooster
Brokerage-firm failure has to be an option: Paulson
By Greg Robb, MarketWatch
Last update: 1:09 p.m. EDT July 2, 2008
WASHINGTON (MarketWatch) - Treasury Secretary Henry Paulson will stress in a speech later Wednesday that federal regulators must craft a system to allow brokerage firms to fail without threatening the overall financial system.
"For market discipline to constrain risk effectively, financial institutions must be allowed to fail," Paulson said in excerpts of a speech he will deliver in London.
"It is clear that some institutions, if they fail, can have a systemic impact, so we must give regulators the authorities to limit that impact and facilitate an orderly failure," Paulson said.
At present, Washington has robust powers to gradually shut down troubled commercial banks, but lacks similar powers over broker-dealers.
(Excerpt) Read more at marketwatch.com ...
Ping!
Well, better late than never.
It seems that financial regulators, like generals, are always getting ready to fight the last war.
There are plenty of laws to prosecute the crooks that are involved with fraudulent loan apps, naked shorts, and BS security/bond ratings.
This is all smoke to let these crooks walk.
“This is all smoke to let these crooks walk.”
Exactly.
Silverado Savings and Loan
Silverado Savings and Loan collapsed in 1988, costing taxpayers $1.6 billion. Neil Bush, son of then Vice President of the United States George H. W. Bush, was Director of Silverado at the time. Neil Bush was accused of giving himself a loan from Silverado, but he denied all wrongdoing. [2]
The US Office of Thrift Supervision investigated Silverado’s failure and determined that Neil Bush had engaged in numerous “breaches of his fiduciary duties involving multiple conflicts of interest.” Although Bush was not indicted on criminal charges, a civil action was brought against him and the other Silverado directors by the Federal Deposit Insurance Corporation; it was eventually settled out of court, with Bush paying $50,000 as part of the settlement, as reported in the Washington Post [11].
As a director of a failing thrift, Bush voted to approve $100 million in what were ultimately bad loans to two of his business partners. And in voting for the loans, he failed to inform fellow board members at Silverado Savings & Loan that the loan applicants were his business partners.[citation needed]
Silverado’s collapse cost taxpayers $1.3 billion.
Neil Bush paid a $50,000 fine and was banned from banking activities for his role in taking down Silverado, which cost taxpayers $1.3 billion. A Resolution Trust Corporation Suit against Bush and other officers of Silverado was settled in 1991 for $26.5 million.
A Republican fundraiser set up a fund to help defer costs Neil Bush incurred in his S&L dealings.[citation needed]
No rats involved in S&Ls!
I wouldn't go that far...
But I can see why McCain would like to keep this bit of history in the past as well.
I was thinking of John Connelly.
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