December 11th, 2009
In the week that the UK announced it will tax bank bonuses, and Goldman Sachs has been bullied into changing their policy on bonuses, we at Business Matters, will add our voice to the chorus of anti-big-bank-shouting. This week on the show, we’ll explore the clandestine relationship between bankers and the government, and ask we haven’t learned our lessons from the Savings and Loan Crisis of the 80′s and 90′s.
If you were old enough to be reading newspapers in the late 80’s, you may remember the Keating Five. If not, then let us give you a quick refresher. The Keating Five were five senators (including John McCain) who were accused of helping to facilitate the fraud being committed by Charles Keating, the then-president of the Lincoln Savings and Loan Association. Why would they do this? Because congress people have huge financial incentive (in the form of campaign contributions) to let banks do as they please. Why did it matter? Because it was this type of unregulated fraud that caused the Savings and Loan (or S&L) crisis, and cost the tax payers billions of dollars. Unfortunately, not much has changed since then. Deregulation still rules and our government is still in bed with the banks. We’ll talk about all of that and get your business questions answered in our new advice segment on this week’s Business Matters.
Listen to the Full Episode| Download MP3
Bill Black is an Associate Professor of Economics and Law at the University of Missouri – Kansas City (UMKC). He was the Executive Director of the Institute for Fraud Prevention from 2005-2007. He was litigation director of the Federal Home Loan Bank Board, deputy director of the FSLIC, SVP and General Counsel of the Federal Home Loan Bank of San Francisco, and Senior Deputy Chief Counsel, Office of Thrift Supervision. He was deputy director of the National Commission on Financial Institution Reform, Recovery and Enforcement. He is also author of the book, The Best Way To Rob A Bank Is To Own One. You can watch the Bill Moyers interview that Black references in his interview with Business Matters here.
Paul Craig Roberts
Paul Craig Roberts is an economist and nationally syndicated columnist. You can read many of his articles here. He served as Assistant Secretary of the Treasury during President Reagan’s first term. He was also Associate Editor of the Wall Street Journal and he’s the author of many books. Most recently, he is the co-author of The Tyranny of Good Intentions : How Prosecutors and Bureaucrats Are Trampling the Constitution in the Name of Justice.
Ask Rieva, with Rieva Lesonsky
We’re proud to introduce a brand new segment this week: Ask Rieva! And what are people asking? This week: Does a husband/wife business qualify as woman-owned? Is it wise to take out an home equity loan to buy a laundramat? And more… To learn more about Rieva, and ask your business questions go to our Ask Rieva page.
For Your Consideration
Business Matters host, Thomas White asks: Why aren’t we learning our economic lessons?
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