Chairman Cox Announces End of Consolidated Program Monitoring Framework IMMEDIATE RELEASE2008-230Washington, DC, September 26 2008Chairman Cox made the following statement: The last six months have clearly indicated that voluntary regulation does not work. adopted as the Congress the Gramm-Leach-Bliley Act, it created a significant regulatory gap by failing to give the SEC or any other body empowered to investment bank to regulate holding companies, like Goldman Sachs, Morgan Stanley, Merrill Lynch, Lehman Brothers and Bear Stearns.Als I said at the time of the Congress of several in recent months, the CSE program was fundamentally flawed from the beginning, because investment banks could opt in or out of voluntary control. The fact that bank holding companies could voluntarily control of their discretion to reduce the perceived mandate to withdraw the IRB program, and its effectiveness geschwächt.http: / / www. gov/news/press/2008/2008-230 dry. htm
Tags: admitting, banks, Bush's, chief, collapse, following, quote, regulation, their, weak
Greenspan admitted it also…even admitted to being wrong about his theories on deregulation.
Glad to see some people taking responsibility.
How about we outlaw all derivative trading and hedge funds, and require all derivative assets be sold within a year. Then we outlaw all dark pool trading, and impose taxes on all trades not held for two years. Then the equity system might benefit someone.
That’s how it reads to me. And Bush and the Republicans in Congress pushed for more regulation earlier on, while Barnie Frank and Maxine Waters said it wasn’t necessary. Draw your own conclusions.
The last fifteen years have made it abundantly clear that Democrats using the force of government to turn our banking system into a welfare system DOES NOT WORK!!!!!
Anyone with half a brain knows that deregulation was the main cause of our recession.
No way
The Banks will never cheat on Americans………..they are Whites…….and Christians
DEMS IN CONTROL…Thanks for the lesson
MERRY CHRISTMAS
That and horrible management within the investment banks is the primary culprit.
Of course, you need capital flows coming in to also make it possible for them to sell the crap they were borrowing heavily to buy or they couldn’t have done it either, but there is no question in my mind that the investment banks and insurers are the primary culprits.
At leastpeople are admitting to it. Kinda rare nowadays.
yes, that’s pretty much what Cox was saying. It has long been held that lack of governmental oversight allowed banks to take increasing risks, putting their financial footing on loose ground, all in the name of increased profits, at the expense of it’s shareholders and customers. History is duly noting the boy george era as being the cause of our present day crisis, regardless of what any bush lovers say in here.
Wait you’re trying to argue facts. You are at the wrong place for that.
Facts=Socialism
There’s no doubt among anyone familiar with the problem that a lack of oversight caused many banks to fail.
The Bush administration admitted this was a problem early in his first term.
It’s pretty obvious. Deregulation ALWAYS leads to abuse and eventual collapse.
lol lol lol lol lol
sorry but saw a lot of answers here moaning about the democrats
Seriously?
there is even mention over the last 15 yrs…and EIGHT of those were republican president and congress years and even the democratic president before him had a REPUBLICAN Congress (who then spent tens of millions of dollars to investigate a bj)
I mean the democrats are to blame yes….but if you have a brain that works at a level above that of a fetus and use objective judgement…then talking about democrats without then shouting about republicans is like slapping a kids hand for telling lies while ignoring the pedophile cannibal who is raping and eating a child
He is Chairman of the Securities and Exchange Commission which is supposed to: The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
http://www.sec.gov/about/whatwedo.shtml
Do you think that the person who runs the Exchange is going to come out and say, “Hey I blew it. It is all my fault. I shouldn’t have required Fannie and Freddy to fill up 50% of their inventories with sub-prime loans. I had no foresight, and this entire mess was partly my fault”?
Or do you expect him to say, “It wasn’t my fault because I didn’t have the power to regulate every little transaction. I thought that requiring Fannie and Freddy to fill up 50% of their inventories with sub-prime loans would be a bad idea. I didn’t have the power to regulate capital formation. That is why it wasn’t my fault”
Wake up. When have you EVER heard a politician accept the blame?