A new abuse on Wall Street

Boston Globe
by Robert Kuttner

08/11/09

Ever since the financial crisis began in 2007, there has been a tension between recovery and reform. It seems to make sense to get the economy back on track now and worry about reforms later. But a time of financial crisis, when Wall Street needs big-time government help, is the rare moment when government has the leverage to demand fundamental change. Otherwise, the moment is lost and the cycle of risky practices and taxpayer bailouts continues. Despite the infusion of massive taxpayer funds, however, it’s back to business as usual on Wall Street…. Here’s one new abuse that should be stopped before it spreads: Big private equity companies, which are largely unregulated, are hungry to take over failed banks...

http://tinyurl.com/lo4au4


Informant: Thomas L. Knapp



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