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Blame Democrats & Republicans

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  • Description

    Barofsky accuses both political parties of selling out average Americans.

  • Duration 4:50
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We would often hear treasury officials repeat the same type of arguments that the banks themselves and their lobbyists would make.

We were trying to push for we thought were really really common sense issues.

I mean things like -- banks why don't we make -- report on how they're spending the TARP money.

-- -- was basic level of transparency.

But we heard it from the banks and then we heard it from treasury officials.

Repeating the word for word the same defenses.

As to why we shouldn't or -- -- do this.

On and that came with.

-- program after program as we identified.

Potential areas of fraud potential areas of conflicts of interest potential areas where the banks could really -- unfair windfalls at taxpayer expense.

Of the arguments that the banks in the arguments of the government officials.

Were indistinguishable so who should American voters believe Republicans or Democrats when it comes to these issues about going forward.

In terms of policy of the financial industry my experience is you have to rip those labels off.

Whether or not somebody's going to be truthful.

And and -- -- -- for real meaningful reform of these issues.

Often doesn't matter if they're Democrat or Republicans but it seems that most Democrats and Republicans are in the back for Wall Street and it doesn't really matter which party -- -- There are Democrats and there are Republicans however.

Who do you recognize the problem.

We're very very supportive of us what we were trying to bring this level of transparency.

-- -- -- -- Will advocates for things like breaking up the banks -- bringing back performance Glass-Steagall so it's not a political thing.

And I -- users' pockets on the left and the right but the pockets on the left and the right in the joint forces it was rather brown.

I can't it is the sponsors -- -- brown Kaufman brown carpet which essentially would have reinstated plastic right who have broken out the banks that putting in the and on significant caps and that was of course brown and incompetent -- I think maybe a Democrat Republican liberal -- -- Pretty Liberal Democrats.

But you had senator Shelby you -- senator -- Join and vote for that bill -- had a bill that really had.

I don't think anyone would describe either of those as as as liberal -- -- even moderate Republicans has some pretty conservative guys.

But those conservatives with these liberals both recognize that we have -- system in our government where we are essentially subsidizing putting taxpayer money.

Behind large financial institutions and that creates a very very dangerous precedent that we -- 2008.

And we're going experience again we don't fix it.

I was very unfortunate because my work period -- allowed me to be in Washington.

In 2007 and 2008.

And you know it was right after.

That I got down there Ben Bernanke -- made the speech about subprime contagion won't spread march 27 2007.

And and I watched things just collapse.

And I picked up on an anger.

People outside of Washington.

And how this had happened and that it happened on everyone's -- for that they be Democrats or Republicans regulators.

Were you surprised at how poorly the regulators had one.

Fail to act before the crisis into after the crisis nothing seemed to have changed.

You know I think initiatives very surprised but.

What I learned over time as a sort of explain in the book he this all comes from this.

Very very Wall Street centric ideology.

So many of the top officials at these regulators and Treasury Department you have to remember.

-- from these banks came from the same washing institutions that helped cause the financial crisis helped make it worse and then ultimately -- beneficiary of the ballots.

And when they -- the government -- bring that ideology with them and I think a lot what you see is reflected in that ideology this whole sense that.

It's not their fault where things could be contained.

-- that the solution doesn't.

Dozen common.

Addressing the problems these banks breaking them up getting rid of their executives.

But -- empowering them making them bigger which is what it was.

Enabling them to do this evening's big and -- or even Dicker today than they were before the crisis and you point this out of the book I mean we are no better off today than we were.

Before the crisis which is that a fair statement even though we have -- in some ways worse for that just that reason there's 2325%.

Bigger.

Again it's important remember this is not an accident it in just an apple didn't fall out of from the sky and also JPMorgan.

I was 20% bigger or Wells Fargo.

Doubled its -- like this was part of government policy this was the reaction of our government was to encourage consolidation within the banking industry.

We -- too big to fail in -- rational decision would have been.

Okay this brought down our country we had to bail them out let's break them up but what they -- decision was let's make an even bigger.

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