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.
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Copyright 2012 The National Memo