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Big banks get in -- trouble.
Joining me now is former TARP inspector general and the author of bailout and an inside account of how Washington -- main street while rescuing Wall Street.
-- Brodsky and love your book thing because it's not just it's not just they want key financial what I mean you start off.
Where you were a perfectly happy federal prosecutors the US attorney's office your New York.
Minding your own business and and I was surprised by the fact that there was a lot of you were kind of partisan in the book about the fact that this was during the Bush Administration the last months of the Bush Administration.
That you were going I'm a Democrat -- I've contributed to the Obama campaign what do they want with me.
Yeah I was really surprised and the US attorney asked me if I put into this job is that spent years prosecuting.
Securities fraud I recently formed and headed.
A mortgage -- group -- the US attorney's office so they're looking for someone to fill this role.
To be sort of the TARP cop.
You provide a law enforcement agencies well as the other types of oversight of the TARP program and when he approached me I have really wasn't all that interest said.
A certain telling me how who's really my obligation and duty to do so -- are -- he had gotten countries speech city that it was a very very effectively yet have explained to me that.
This was our country was in the economic equivalent of 9/11 and it was my duty to step up.
But but what I think -- I thought could drugs like he might you know on the Democrat and actually contributed a couple hundred bucks the Obama campaign just last week.
And -- thinking that would get me out of it but he's like now they don't canvases and purely merit appointment and it -- care.
Why did -- -- they find you why did they want you know I end in the other part of the book he's you don't spend a lot of time wanna but it was interest in.
That you were -- from federal prosecutor you were involved.
Going to South America that Colombia drug cartel.
And there was a woman sitting in an office with you that was sent there to kill you.
Yeah we are doing this investigation of the far you know the world's largest narco terrorist organization.
And we're down they're very intense investigation ultimately we charged that fifty the top leaders of the far.
But they had infiltrated our investigation and they had sent her.
As double agent not to be dramatic but that's -- -- -- she's pretending to cooperate with -- the -- was also go back to the jungle and and report back to her bosses.
And on the last meeting she had been sent to -- how the militia.
That was going to kidnapped and or and or murder me once she called the location.
But that was the -- -- I just happen to tell her that she was such a good witness had such good information that we're gonna bring her the United States.
So she decided that point rather than calling her body's and having me -- -- -- that.
I was offering her a better deal.
A singer found out months later entries back and you had no idea where you offered deal what's going on on the other side but that that would fit for being Columbia so this whole background of leaders of mean.
Dealing with the drug cartel in dealing with all these dangerous situations and financial fraud -- a mortgage fraud unit.
How -- they put this together defined Neil -- It's gonna call out I think they where they were they wanted to consider having a prosecutor.
-- having to protect the programming and look pushing up hundreds of billions tax dollars that's gonna draw a lot of criminal flies to all that government honey.
On anyone and have someone -- experience in these areas and the strangest recommended me just you thought I was the best person in the district.
And then I went to the White House and treasury and interviewed and they thought I was the best person for the job.
In that process so you have now got a Ph.D.
What we all know exists desist -- Greece can hand business between Wall Street and Washington.
It is and it seems from your book that -- on the side not too much on the -- to Washington but you're going Wall Street -- the problem.
I don't know Washington is just as much of the problem I mean this is I -- the real problem the real part of this book you know I was shocked when I got down there.
Again I was pretty night as the federal prosecutor I didn't really know the inner workings Washington I had a taste of it from from my job would you I think around the world fighting drug cartels -- you didn't know.
-- was absent the politics has actually shocked to see how much Wall Street influences.
Controls our economy and ultimately dictated the terms of their own bail out but this is a problem that that land squarely with government as much as Wall Street.
Our government has been so captured by these interest so serve these Wall Street interest that when making decisions.
They put the interest of these handful of financial institutions and their executives.
Over that of the American people over the broader economy all the things about was post -- main street that left behind it was all about enriching and protecting.
A very broken status quo for the benefit of the bunch of bankers with his.
News from this week because sandy Weill who headed Citigroup and insurance companies I mean.
He was very instrumental in getting Glass-Steagall pulled apart.
Now he comes out this past week and says I think maybe we should break up the big banks people -- said.
Is he trying to change -- do really changing his mind and thinking there was some mistake or is -- -- another financial angle to this what did you make of when you heard that story.
You know I don't care what his motives are I welcome him to -- break up the banks I've been an advocate for this.
You know after spending -- couple years in Washington.
In seeing the corrupting influence of that power.
And seeing how all be incentives of -- normal capitalist free market are perverted by having these institutions because of the implicit.
Guarantee that we would bail -- out yet again.
I recognize that this is something it's going to set us on the path.
Towards another financial crisis and in many ways it's why I wrote this book so that the American people could see.
Just how bad it is and -- to a specific examples of how much the government serves as interest so I've been advocating for this you know.
Since before I stepped down as a special inspector general and ever since and I think it's great that sandy -- Who lot of people credit as being sort of the creator of these Frankenstein monsters these large too big to fail banks that have been roaming the world causing economic Havoc wherever they go.
That that he's joined a team in recognizing that is an unsustainable broken system.
And you see the chorus the growing course of people who recognize.
What I and a lot of others have been advocating for a long time.
Back from those financial interest should interest and that our regulators.
Start serving interest the American people not these banks all right welcome aboard sandy.
You were a bush appointee so you work for a few months under the Bush Administration.
That and and you worked under the Obama administration -- there was any chance -- they could changing gear and independent prosecutor independence but inspector general I should say.
But was there any difference did you see any difference between Washington -- -- of Washington bush.
You know it is really one of the most surprising stakes in its -- said you know I was a lifelong Democrat -- it contributor and -- running into a lot of brick walls when I first got down there.
And I really.
I couldn't believe some of the things that I was hearing.
-- I would advocates of taxpayer protections closing loopholes more transparency in the bail out.
I kept hearing the same refrain over and over again.
That my concerns were on warrant and they weren't necessary we could trust the banks who never risk -- reputation by doing anything wrong Mississippi's guys have not seen everything that led up to financial crisis.
And I was really looking for I have literally circled on my calendar January 20 2009.
Because I thought okay.
Change administration we have a whole new attitude.
These good people would see the world and I didn't end nothing changed up and you know what changed it got nasty.
It got more difficult pick -- more political.
The message was the same the deference was the same.
But the politics got a little master that was the only in the orange we're talking deal brought deed the special prosecutor for TARP the guy that was there -- want to be the copper watch over money.
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