Bill Black, our favorite outspoken ex-regulator (S&L crisis), criminologist, and law professor on our new prospective Treasury Secretary, Lew:
The fifth less obvious problem is that each of these key advisors is so slavish in his dedication to our systemically dangerous institutions (SDIs) (the so-called “too big to fail” banks) that they have embraced crony capitalism and the ability of the SDIs’ CEOs to lead “control frauds” with impunity from the criminal laws. I have explained in prior articles how this has crippled our nation’s economy, democracy, and integrity and will cause recurrent, intensifying global financial crises.
Geithner has disgraced the nation and the Department of the Treasury by pushing to prevent criminal cases against the SDIs and their senior officers. There is nothing in Lew’s record that suggests he will restore the nation’s honor. He was picked to continue to serve the SDIs’ interests. Lew will act to ensure that the revolving door remains a direct portal to immense Wall Street wealth for the administration’s senior officials.