Byron Dorgan, the Democratic Senator from North Dakota, has been a prominent critic of deregulation in the financial sector. 10 years ago he opposed the repeal of the Glass-Steagall Act and these days he’s feeling pretty good about his stance.That’s probably a mistake since the worst abuses in the banking sector could have been accomplished, and probably would have been accomplished, even under Glass-Steagall. But Senators rarely let facts interfere with their analysis.
The prospect of Dorgan and John McCain, that guy who pretended to run for president last year, holding hearings to investigate the causes of the financial crisis is hardly reassuring. We’re bound to get a lot of posturing from Senators like Dorgan eager to prove they were right all along.
That said, it could prove pretty entertaining. Check out this quick response to Maria Bartiromo’s challenge to Dorgan about whether or not the Senate has the financial expertise to undertake the inquiry Dorgan and McCain have proposed.
Bartiromo: With all due respect, Senator, does Congress really know enough about the financial system and these complex instruments to mount an effective probe?
Dorgan: It’s a fair point. But one might ask, do the biggest and most sophisticated bankers in the country know enough about these financial instruments? Apparently not.
The rest of the short interview in Business Week is here.