The Lessons of the Savings-and-Loan Crisis
Barron's recently interviewed William Black, an associate professor of economics and law at the University of Missouri, Kansas City and past deputy director of the former Federal Savings and Loan Insurance Corp. (FSLIC), on the current financial crisis. When asked about the government's plan to back private purchases of toxic assets, Black asserted that U.S. Treasury Secretary Tim Geithner is essentially using taxpayer money to cater to banks friendly with Washington politicians. Rather than covering up the depth of the problem, he stressed regulators need to conduct a thorough investigation and set up major task forces to assess and address the immense scale of fraud taking place. Otherwise, it will destroy the economics and integrity of the Obama administration.
Source: Barrons.com | April 13, 2009