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Sunday, October 23, 2016

Jeff Madrick: Banks And Regulators Should Be Held Accountable For LIBOR [VIDEO]

Jeff Madrick: Banks And Regulators Should Be Held Accountable For LIBOR [VIDEO]

Roosevelt Institute Senior Fellow and Rediscovering Government director Jeff Madrick appeared on Viewpoint with Eliot Spitzer this week along with Financial Times correspondent Tracy Alloway to discuss who should bear the blame for the growing LIBOR scandal. Responding to evidence that Fed officials knew the banks were up to no good, Jeff says in the clip below that “this culture of manipulation and acceptance of manipulation I think went very deep throughout Wall Street.”

Jeff says that given these revelations, “any idea any longer that one can trust bankers or investment bankers or mortgage brokers to do the right thing and set the right rate rather than make a very easy buck should be out the window.” In the online exclusive below, he adds that “the idea they let this happen should anger people on top of all the other financial crisis we’ve had… They should be demanding some form of justice.” But he notes that banks shouldn’t be the only ones sharing the blame — there’s plenty to go around for regulators “if it turns out they really fully understood it was going on, and I think they understood enough that was going on that they should be held responsible.”

Cross-Posted From Rediscovering Government.

The Roosevelt Institute is a non-profit organization devoted to carrying forward the legacy and values of Franklin and Eleanor Roosevelt.

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  • howa4x

    This is why we need stronger regulation and any one who will trust wall st is a fool. Do we really want social security or medicare invested in a system that is under regulated. What would you do if you were told that you social security was gambled away on a bet in Europe. The banks would love to gamble with your money and the republicans want them to have it in an un regulated enviornment. Is that a new horror movie script?

    • Do I really want SS or medicaid invested? Not no, but HELL NO! I want my funds safe and secure and they won’t be. What idiot would want to invest their retirement or SS in Wall Street? Yes, it will be a horror story if ever allowed to happen.

      • howa4x

        This is the Republican plan to do away with SS and give everyone an IRA type investment. Paul Ryan has it in his plan that passed the house. They are keeping quiet about it

  • dtgraham

    howa4x’s comments should be self evident to any sane, rational person. The problem is, too much of the American right these days are neither. Fixed New’s new meme on this is that it’s Tim Geithner and evil government’s fault solely. That’s what they’re now pushing, on Barclays and other’s Libor deception. I just finished posting back and forth with one of this site’s conservative contributors, who feels that the financial services sector only does these things to protect themselves from the evil that government basically forces on them. Others will post here with thoughts along those same lines. It’s a world gone mad. That’s what you get when the plutocrats establish their own media to propagandize the public…..and that media attracts viewers and listeners and becomes successful.

    • Precisely why Romney doesn’t need to be elected, among other things he’s done… like offshore accounts, putting trusts in his wife’s name, all to avoid paying taxes here which if zillionaires paid their fair share, it would help bring the deficit down. Not to mention his outsourcing jobs, etc.

  • The banks seemed a lot more trustworthy in the 60’s and 70’s. Or maybe I was just kidding myself ?

    • dtgraham

      Nope, you weren’t. Some of the main culprits here are the end of Glass-Stegall regulations and a sweet little piece of legislation called the Commodities Futures Trading Modernization Act. Any Republican nutball who tries to tell you that it’s all the fault of the Community Reinvestment Act is out of his mind.

  • This is what happens when things are DEREGULATED. Under the Glass-Steagall Act none of this would have happened. I wasn’t stupid enough to fall for “let the market regulate itself”. That’s like having the fox guarding the hen house. Not to mention that the regulators were not doing their jobs. They just looked the other way. There was guy, can’t call his name who told SEC what was going on back in 1999. Since then, now they listen. Whatever. Glass-Steagall should be reinstated.

  • How many more of these financial fraud cases are we going to tolerate before the people act. If poor people commit fraud they go to jail. All of them. When the financial industry commits fraud they offer up one sacrificial lamb and everyone else walks. Thats why their fraud is worth the gamble to them. When everyone gets prosecuted then it will have an impact. We need to pledge ourselves to changing this growing criminal activity. Don’t believe that it is to large to do anything about. It can be changed and many in the financial industry want it changed. These insiders will come forth if we as citizens have the couraage to challenge the system.