Wall Street's Victory Lap
MIT Professor and co-author of 13 Bankers
Posted: May 26, 2010 08:56 AM
By now you have probably realized -- correctly -- that "financial reform" has turned into a victory lap for Wall Street.
When they saved the big banks, with massive unconditional support (both explicit and implicit) over a year ago, top administration officials promised they would be back later to fix the underlying problems. This they -- and Congress -- manifestly have failed to do.
Our banking structure remains unchanged, the rules will be tweaked at the margins, and the incentive and belief system that lies behind reckless risk-taking has only become more dangerous. (The back story, if you can still stomach it, is in 13 Bankers).
There is only one small chance for any sensible progress remaining -- and you are about to see this crushed in conference by the supporters of unfettered big banks. more