William Black interview

1 comment to William Black interview

• george

  2009-04-07 at 13:04

  There’s more.

  Mr. Black is not merely “interesting.” He is pointing the way to (literally) our survival. We should, and we must, pay attention as appropriate. We MUST pull the rug from under those who are corrupting the U.S.A. and the world to death.

  William K. Black on The Prompt Corrective Action Law

  Just a snippet from the above which was posted at Bill moyers’ site after the interview as a follow up.

  “My [Mr. Black’s] comments in the Bill Moyers Journal interview about the “Prompt Corrective Action” (PCA) law (adopted in 1991) have sparked considerable comment in the blogsphere.

  “The PCA law mandates receivership in these circumstances.

  “…there is a consensus among economists and white-collar criminologists (and senior regulators that have successfully resolved prior crises such as William Seidman, Edwin Gray, and Paul Volcker) that failing banks should be placed promptly into receivership if they cannot recapitalize. So the fundamental question, even if the PCA law was never passed, is what can the nation do to end the disastrous Paulson/Geithner policy of covering up the largest banks’ losses and leaving the CEOs and senior officers that caused their failures, often through fraud, in power? How many of those of us that voted for Mr. Obama believed that they were voting for a continuation of Bush’s failed financial regulatory policies? Given the terrible cost to taxpayers during the early years of the S&L debacle of “forbearance” for failed S&Ls, the horrific failure of Japan’s embrace of the cover up of its bank losses, and the great success of the vigorous reregulation of the S&L industry why would we adopt the failed strategy instead of the proven success? The way we reregulated the S&L industry was not simply an economic success, it was vital to restoring at least some integrity. We insisted on honest accounting, used prompt receiverships, and rooted out the control frauds. This led to over 1000 felony convictions related to the debacle – the greatest criminal justice success in history against elite white-collar criminals.”