Tim Geithner is testifying before the House Financial Services Committee this morning, and Congressman Barney Frank says he’s getting nostalgic. Partly because he’s retiring, and partly because he feels like it’s 2006 all over again.
“I’m getting besieged by pleas” from those who think the problems in our economy are due to too much regulation.
These supplicants are telling Frank that regulations are too limiting, too much, and too complicated to understand.
And you know what he has to say to that?:
“Well you know what was too complicated for them (Wall Street) to understand? Their own razzle dazzle shenanigans…”
Not to say that his only problems are with those on Wall Street. Frank said now that he’s leaving, he wishes he could have consolidated the CFTC and the SEC, and could have regulated derivatives better.
But back to Frank’s point — Wall Street needs to look at itself.
“The notion that the problem today is too much regulation… once a week we get a demonstration that that’s not true.”
He mentioned Wall Street’s “disgraceful” behaviour with the LIBOR, Jamie Dimon’s inability to stop JP Morgan from losing $2 billion, AIG, and “Capital One admitting they had vendors that were cheating people…”
“Now there have been problems in the past,” said Frank, “but the notion that our problem is too much relegation. I guess I’m struck by the precocity of people who say that…. as they were obviously born around the year 2009.”
And that’s the payoff, people.