madmark.myfastforum.org

Mark · Site Admin Joined: 13 Nov 2007 Posts: 1052

This article highlights a new book about how Henry B. Gonzalez warned about the financial fallout from deregulation, and how Greenspan lied:

http://www.accuracy.org/newsrelease.php?articleId=1849

Excerpt:

"Greenspan had already been through a financial crisis and should have known exactly why better regulation was needed. Greenspan fought House Financial Services Chairman Henry B. Gonzalez, who pushed for needed regulation that was plainly illustrated after the savings and loan/banking crisis that ended in the early 1990s.

"The Clinton administration called for a rational bank regulatory system by consolidating the bank regulators into one agency. Greenspan railed against the idea and talked about the need for 'hands-on regulation' by the Fed. Gonzalez replied that Greenspan failed to tell us where the Fed really has its hands and that the only hands that should be on Federal Bank regulation are those of a neutral bank regulator. Since two-thirds of the nine directors at each of the twelve Federal Reserve Banks are elected by the banks in their district, there are profound conflicts of interest with bankers regulating themselves.

"In his 2007 book, The Age of Turbulence, Greenspan changed his mind and said that 'hands-on supervision and regulation' is 'being swamped.' That was last year when he wrote 'We have no sensible choice other than to let markets work.' Yesterday he testified he was wrong about his hands-off regulatory philosophy. The 2007 hands-off regulatory philosophy was a change from his previous hands-on regulatory stance. This is not philosophy. It is the 'master of garblements,' the title of Chapter 3 in my book Deception and Abuse at the Fed: Henry B. Gonzalez Battles Alan Greenspan's Bank."