Author Archives: Yves Smith

Matt Stoller: Greta Krippner’s “Capitalizing on Crisis” Describes Real Origins of Financial Deregulation

ves here. Having lived through some of these developments, I concur with Krippner’s observation that financial deregulation was well underway prior to the Reagan era and the most important driver was interest rate volatility, which wreaked havoc with interest rate caps and other policies that made sense only if inflation stayed within a limited and not all that high range. But similar deregulatory forces were underway in the securities industry side as well.

Read more...

Focus on TBTF Banks Misses How Even More Powerful Private Equity Kingpins Are Moving More into Unregulated Parts of Banking

The fact that the world’s biggest banks drove themselves off a cliff yet managed to save their hides and even profit from the exercise while leaving ordinary citizens to pick up the tab is ample reason for citizens and the small cohort of non-captured regulators and politicians focused on their continuing misdeeds.

But as a result, an even more powerful set of financial players, namely, private equity firms, is continuing to expand the scope of their activities with little scrutiny and pushback by the press and public interest groups.

Read more...