Consider just this month’s news in financial services. First, Barclay’s has been manipulating the Libor, the main interest rate upon which most other interest rates and financial transactions are based, since 2005. Moreover, Barclay’s traders were colluding with traders in many other banks to assist them in manipulating the Libor too, so that they could all profit […]

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In his State of the Union speech, President Obama said and proposed many reasonable-sounding things. One of them was this: We’ll also establish a Financial Crimes Unit of highly trained investigators to crack down on large-scale fraud… financial firms violate major anti-fraud laws because there’s no real penalty for being a repeat offender… So pass […]

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What unites the midterm election results, the Federal Reserve’s decision to spend another $600 billion to keep interest rates down, the failure to address the foreclosure crisis, and America’s worsening relations with its G-20 partners? And, more generally, what explains the Obama Administration’s toothless response to the financial crisis, in particular its reversion to status […]

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Critics of the Obama administration’s remarkably friendly policies towards Wall Street have recently been encouraged by the appointment of Elizabeth Warren and the announced departure of Larry Summers. Unfortunately, these two developments do not solve our problems, or even indicate that President Obama is interested in solving them. As usual with this administration, Elizabeth Warren’s semi-appointment was […]

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