Four years after the massive bailout that rescued Wall Street, we look at the state of the financial sector with Rolling Stone’s Matt Taibbi and former financial regulator William Black. In a new article for Rolling Stone, Taibbi argues the government did not just bail out Wall Street, but also lied on the financial sector’s behalf, calling unhealthy banks healthy and helping banks cover up how much aid they were getting. The government’s approach to the banks came under new scrutiny this week after it reached an $8.5 billion settlement for improprieties in the wrongful foreclosures on millions of American homeowners, including flawed paperwork, robo-signing and wrongly modified loans. The settlement will end an independent review of all foreclosures, meaning the banks could be avoiding billions of dollars in further penalties, in addition to criminal prosecution. [includes rush transcript]
Filed under Wall Street, Financial Meltdown, Author Interviews, Matt Taibbi, William Black
Matt Taibbi, contributing editor for Rolling Stone magazine and author of the book Griftopia: A Story of Bankers, Politicians, and the Most Audacious Power Grab in American History. His new article for Rolling Stone is "Secrets and Lies of the Bailout."
William Black, associate professor of economics and law at the University of Missouri-Kansas City. A white-collar criminologist and former senior financial regulator, he is the author of The Best Way to Rob a Bank Is to Own One.