Saturday, March 28, 2009

On "Mo' Regulation"

While Geithner's "mo' regulation" mantra may have some positives, Ticker indirectly raises the question 'What's it Good for?'

Is it any wonder that Congress feels free to allow con men in the "banking industry", both foreign and domestic, to literally steal nearly $100 billion dollars of our money through a "bailout" of AIG, passed through the firm as a conduit to banks around the world?

For a moment, forget about UBS and the other foreign banks paid by the "loan" to AIG.

Remember that a number of DOMESTIC Banks also got these payouts. They were payouts covering the bad bets made by AIG's Financial Products unit.

So when the Fed Bank Examiners (and the FDIC examiners) were looking at the books of the domestic banks in question, why did those examiners NOT question the collateral and reserves posted by AIG to back up those bad bets?

In other words, Greenspan & Co.'s 'regulators' did not 'regulate' in the first damn place.

More 'regulation' is the cure?

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