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Why haven't any senior Wall Street executives gone to jail for the financial crisis? PBS' "Frontline" is the latest mass media outlet to ask this increasingly unanswerable question.
January 22 -
William B. Harrison Jr., who helped create JPMorgan Chase, on Tuesday offered a resounding defense of megabanks and the good he said they do for customers and investors.
January 9 -
Sandy Weill's call to break up the big banks by restoring the Depression Era law has sparked a backlash among some who argue it would not help prevent the next crisis.
August 7
Breaking up the biggest banks would be futile, onetime Citigroup (NYSE:C) eminence and former Treasury Secretary Robert Rubin said on Thursday.
It was the latest
Rubin on Thursday delicately disagreed with Weill, who had
"I have a lot of respect for Sandy, but I think that if you followed Sandy's path and you broke up the banks in some fashion or other, as he's describing, the risk isn't going to go away," Rubin said in a
"The systemic risk, the 'too big to fail' risk will move from one place to another place," he added. "For example, if you could curtail what the banks can do in terms of trading, it isn't that the trading is going to go away. You have a large global economy that needs those activities but they'll go to other platforms. I think the real question is, are there ways to deal with the risk?"
Former Treasury Secretary and Rubin protégé Timothy Geithner "probably had the best answer" to that question, in advocating for banks to build up their capital levels, Rubin said. Geithner is
Rubin
A "Frontline"
When asked on Thursday if he felt any responsibility for what happened to Citigroup, Rubin largely demurred.
"I was worried about excesses before the crisis began. But what I didn't see and virtually nobody saw … was the possibility of a serious crisis. It turned out to be the worst crisis in about 80 years. I wish I had seen it," he said. "I regret not having seen it, and I would suspect or would guess that there are very large numbers, vast numbers of other people who have the same view, that is to say, who also regret not having seen it."