Patrick Parkinson: A Case Study in How to Get Promoted at the Fed

EB's picture

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morevisitor's picture

I recently came across your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed

<a href="" >CAT 2011</a>

Anonymous's picture

One more Wall Street very sad for our country. It appears that the insanity rule won...keep repeating the same mistake and hope for a different outcome.

I am glad I am old and probably won't live long enough to see the slide of our country into an oligarchy like Russia had several years back but not have a government strong enough to take them down!

Is this really what the GOP want with all their pro- big business and small federal government?

R.A.G.'s picture

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Some interesting interviews on the topic here:

In The Warning, veteran FRONTLINE producer Michael Kirk unearths the hidden history of the nation's worst financial crisis since the Great Depression. At the center of it all he finds Brooksley Born, who speaks for the first time on television about her failed campaign to regulate the secretive, multitrillion-dollar derivatives market whose crash helped trigger the financial collapse in the fall of 2008.

"I didn't know Brooksley Born," says former SEC Chairman Arthur Levitt, a member of President Clinton's powerful Working Group on Financial Markets. "I was told that she was irascible, difficult, stubborn, unreasonable." Levitt explains how the other principals of the Working Group -- former Fed Chairman Alan Greenspan and former Treasury Secretary Robert Rubin -- convinced him that Born's attempt to regulate the risky derivatives market could lead to financial turmoil, a conclusion he now believes was "clearly a mistake."

Born's battle behind closed doors was epic, Kirk finds. The members of the President's Working Group vehemently opposed regulation -- especially when proposed by a Washington outsider like Born.

"I walk into Brooksley's office one day; the blood has drained from her face," says Michael Greenberger, a former top official at the CFTC who worked closely with Born. "She's hanging up the telephone; she says to me: 'That was [former Assistant Treasury Secretary] Larry Summers. He says, "You're going to cause the worst financial crisis since the end of World War II."... [He says he has] 13 bankers in his office who informed him of this. Stop, right away. No more.'"

Greenspan, Rubin and Summers ultimately prevailed on Congress to stop Born and limit future regulation of derivatives. "Born faced a formidable struggle pushing for regulation at a time when the stock market was booming," Kirk says. "Alan Greenspan was the maestro, and both parties in Washington were united in a belief that the markets would take care of themselves."

Now, with many of the same men who shut down Born in key positions in the Obama administration, The Warning reveals the complicated politics that led to this crisis and what it may say about current attempts to prevent the next one.

"It'll happen again if we don't take the appropriate steps," Born warns. "There will be significant financial downturns and disasters attributed to this regulatory gap over and over until we learn from experience."

EB's picture

Born is no hero, despite what the Frontline piece might attempt to convey.  Robert Wenzel sums it up best here: 


Anonymous's picture

Is that you Summers?
Nice try.

Careless Whisper's picture

I thought he did a 180 but it's more like a 540.

Anonymous's picture

hypocrates, plain and simple. No time is history does anyone not hold a banker in suspect and the kind government
in contempt as the animal spirits they are inclined to devour. bastards..... should be mopping the floors anywhere and away from power given there sick dreams to help me the taxpayer. Cruel bastards they are and given there bent of mind there just warming up there cheerfull and usefull idiots. Sick, just plain sick bastards in history all over again.

Anonymous's picture

Well, coming from the king of market manipulation, he should know.

Anonymous's picture

I suspected this to be the case.

Good work

Zippyin Annapolis's picture

Same can be said of Gensler, Giethner, Rubin and Summers. The cool aid flowed like a fine wine from the GS, JPM and CS wine cellars. And after reviewing the House FSC OTC bill not much has or perhaps will change.

Rainman's picture

A priceless stroll down memory lane.....excellent post.

deadhead's picture

Nice digging! Thank you

Yankee's picture

Sounds good, he is an economist, can't go wrong there.  And he seems like a group thinker - more thinkers grouped (or is that groped?)!

Hey he gets paid and has a secretary, what is wrong here?

Anonymous's picture

See now there ^ is an excellent mixed-metaphor phrase: "GROPED THINKERS"

Why do they all sound the same? Because someone's got them by the "short & curlies".


Anonymous's picture

Well, it has come to a full circle.

I guess after a few years, the law will need to be more "flexible" and "resilient" and hence by "facilitating the transfer and dispersion of risk," we can all be happy...