But a year after a federal grand jury issued subpoenas and regulators vowed reforms, the largest bankruptcy since the financial crisis has begun to fade from Wall Street’s memory.
Federal authorities have all but cleared MF Global’s top executives of criminal wrongdoing, people briefed on the matter say. The government has yet to usher in a wider overhaul of futures trading rules, save for certain piecemeal policy changes. And the profit-making exchanges that rely on brokerage firms for business still police the futures industry, presenting potential conflicts of interest.”
The man who created one of the country’s biggest banks is now arguing that too big to fail banks should be split up.
“Many of the costs and benefits of financial regulation simply cannot be quantified. How do you quantify the human costs that all the economic wreckage has inflicted? Searching and not being able to find work for years…lost retirements, educations and dreams. How do you quantify that? You don’t.”
“If the Senate confirms him, this would be Gallagher’s second spin through the revolving door—he previously left WilmerHale to join the SEC in January 2006, only to return to the firm in 2010. And he would be the latest on an ever-expanding list of WilmerHale alumni at the SEC, including the current general counsel, deputy general counsel, associate general counsel, corporation finance division director, enforcement division chief counsel, and deputy secretary.”
Wall Street lobbyists are working hard to kill a Dodd-Frank program that encourages financial sector whistleblowers. After all, if the program had been around when Bernie Madoff was ripping off billions of dollars, it might have saved a lot of people their life savings. Now, a draft bill by Rep. Michael Grimm, a New York Republican, would gut the whistleblower program. Click here to tell your member of Congress to protect whistleblowers.
The Project On Government Oversight’s Podcast Crew talks about the Securities and Exchange Commission’s revolving door. A recent POGO study found that more than 200 former SEC employees who left the agency between 2006 and 2010 have taken jobs representing clients before the Commission. Check out our report and revolving door database.
To celebrate the launch of our SEC revolving door database, we’re giving away copies of Rolling Stone reporter Matt Taibbi’s new book Griftopia, which breaks down the causes behind the 2008 Wall Street meltdown.
Winning your copy of Griftopia is simple. Just visit our post on Facebook and follow the instructions.