Elizabeth Warren Explains What Went Wrong With Financial De-Regulation (Congressional Oversight Panel Clip)

Dr. Warren introduces the COP report on financial regulatory reform.  This short video is an outstanding primer on the history of financial regulation and 3 particular failures that led to our current crisis.  Extremely interesting presentation.

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Comments

[Morton]

So, basically she is admitting that they got away with it.
She is saying
"Now for you folks at home who are to stupid or lazy to understand. We are going to bolt the stable door now the horses have gone."

So long and thanks for all the TRILLIONS.

[GS]

What nonsense. I generally like what she's said previously but her faith in regulation here is beyond ridiculous. Where does she plan to find the legions of financially smart people willing to work for $50-75K and no bonus as a financial regulator? And why does she think the new regulatory system won't be captured by the financial establishment like the old one was? Does she think we're going to all of a sudden stop putting Goldman Sachs alums in key regulatory positions?

[Oscar DeGrouch]

At 3:00 she says "without those bad loans, there would have been no toxic assets to spread through the system."

Agreed. Hey, where did the "capital" for those loans come from in the first place, anyway? Maybe she should read HR 1207.

I'm also sick of this "too big to fail" moniker that's going around - it should be called "too big to remain in existence". The big fish gotta die sometime.

[DailyBail]

Some good comments...enjoyed reading them. None of the answer are easy. Term limits on Congress would be a good place to start.

[Allan]

I am amazed that "the Gov't" portrays itself the solver of the problem. Consider the fact that the Gov't created ambitious (over zealous) housing goals/quotas (aka regulations) for Fannie/Freddie to achieve. This was a root cause of Fannie/Freddie relaxing underwriting standards, which in turn made it easy for the likes of CountryWide to become predators and actually funded predatory lending. The Gov't was instrumental in creating the problem in the first place, the problem it now tells you it is going to solve through hightened regulation.

[DailyBail]

Good comments Allan.