EagleTribune.com, North Andover, MA

September 20, 2013

Letter: We’ve done nothing to rein in financial sector

The Eagle-Tribune

---- — To the editor:

I just saw that it has been five years since the collapse of Lehman Brothers and the start of the “financial crisis.” What has changed and what have we done to make sure it doesn’t happen again?

The answer of course, is just about nothing. The firms on Wall Street, the big banks, the mortgage companies, the insurance giants have gone unpunished by both the Bush and Obama administrations. It was fraud that brought down the economy, but I rarely hear it spoken of on the corporate mainstream media. It was all just one big mistake, an error, an oversight. The housing bubble, the financial instruments like credit default swaps, the securities backed by mortgages that could never be paid back, liar loans, no income verification and so much more that caused a massive ticking time bomb that eventually blew up.

Now I hear that President Obama wanted to appoint Larry Summers as Federal Reserve chairman. Are you kidding? This was one of the people that squelched a woman named Brooksley Born, who was trying to warn of the risks of these things called derivatives, like credit default swaps.

Our leaders in Washington still have not re-instated the law that keep our financial system safe for 50 years, the Glass-Steagall Act. The repeal of this law by the Clinton administration, not a deregulating Republican, helped create the too big to fail banks.

In the past five years not much has changed. No one has gone to jail, the CEOs of the companies that created this are living large and millions of Americans have been ruined — and we all got the bill. Another crisis can happen at any time.

Jay McClenaghan