ProfessorMurder

FRONTLINE: the warning | PBS



Quick summary:

Brooksley Born just got the job at a small dept, regulating Fraud in the stock market.

She believes in a MIX MARKET W/ REGULATIONS.
Greenspan (her boss) believes in the fairy tale "free market" (no such animal)


She is called to Greenspans office,
She tells him these derivative markets are dangerous and full of fraud.
Greenspan tells her (off the record):
"We don't go after Fraud", We let the market regulate itself."


She is astonished cause her dept is solely investigating fraud and OTC derivatives was a jungle.

That's when all the "heavy hitters" in the Clinton Administation shut down her dept forcing her to resign,
her position filled by one of her laisse-faire enemies.

Then Meltdown ensues....



greenspan creates, fixes, and is the hero of the meltdown.



I believe the guy with the grey hair took over Brooksley Born job after she blew the whistle.

One Regulator Is Closely Eyeing Derivatives
FRONTLINE: the warning: video timeline | PBS


OTC Derivatives: "now this is an Unregulated market, no transparency, no
capital reserve requirements, no prohibition on fruad, no prohibition on
manipulation, no regulation on intermediaries, all the fundamental templets
that we learned in the great depression are needed to have markets function
smoothly are gone."

__________________
"No contaban con mi astucia!"