Advertisement
The Enabler
ALAN
GREENSPAN
WAS
Chairman of the Federal Reserve (1987-2006)
WHAT HE
DID Pushed for sweeping power to regulate Wall
Street — and then failed to use it. Fueled "irrational"
bubble with low interest rates.
WORST
MOVE Called derivatives like CDOs "extraordinarily
useful"; regulating them would be a "mistake."
NOW
ADMITS He was "partially" wrong to not impose
tougher oversight.
The Pioneer
SANDY
WEILL
WAS CEO
of Citigroup (1998-2003)
WHAT HE
DID Created the first too-big-to-fail company,
Citigroup. Led the boom in subprime mortgages.
RECENTLY
Celebrated $45 billion taxpayer bailout of Citi by taking
Mexican vacation on Citigroup jet, complete with $13,000 carpets,
pillows made from Hermés scarves, and Baccarat crystal
glassware.
The Ideologue
PHIL
GRAMM
WAS
Senate Banking Committee chair (1995-2000)
KNOWN
AS "High priest of deregulation"
WHAT HE
DID Pushed repeal of Glass-Steagall Act, leading to
rise of megabanks.
WORST
MOVE Wrote law that exempted disastrous CDS deals
from all regulation.
NOW
ADMITS Nothing. Says there is "no evidence" his
laws caused crash, which he dismissed as a "mental recession."
Advertisement
The Arsonist
JOE
CASSANO
WAS
Chief of AIG Financial Products (2001-2008)
WHAT HE
DID Blew a $500 billion hole in fabric of the
universe by placing massive bet on the bubble economy with money he
didn't have.
WORST
MOVE In August 2007 told investors his CDS deals
could not lose even "$1"; lost $352 million that
quarter.
NOW
Enjoying his $280 million in earnings.
The Bagman
ROBERT
RUBIN
WAS
Treasury secretary (1995-1999)
WHAT HE
DID Opposed regulation of credit swaps; fought to
overturn Glass-Steagall Act, leading to creation of Citigroup,
where he later made $115 million.
WORST
MOVE Asked Treasury to pressure ratings agencies to
delay downgrading Enron, a Citigroup debtor.
NOW
Still on Citi's board; mentor of Treasury Secretary Geithner.
The Card Shark
JIMMY
CAYNE
WAS CEO
of Bear Stearns (1993-2008)
WHAT HE
DID Took card-playing vacations and allegedly
smoked weed while Bear went bankrupt.
WORST
MOVE Cashed out his $61 million share after
resigning shortly before Bear's sale to J.P. Morgan Chase.
NOW
SAYS Of Treasury Secretary Geithner: "The guy
thinks he's got a big dick. He's got nothing, except maybe a
boyfriend."
Advertisement
Mr. Buck Passer
CHRISTOPHER
COX
WAS
Chairman of the SEC (2005-2009)
WHAT HE
DID Gave the market a free ride, waiting until far
too late to reverse the disastrous "voluntary regulation" program
of 2004 and police the ratings agencies.
LAME
EXCUSE Insisted it wasn't his fault, claiming
deregulatory policies tied his hands.
NOW
SAYS His "greatest contribution" during the crisis
was staying "calm."
The Predator
ANGELO
MOZILO
WAS Head
of Countrywide Financial (1969-2008)
WHAT HE
DID Biggest provider of subprime mortgages;
specialized in predatory loans that put broke people in
mansions.
WORST
MOVE "Friends of Angelo" program gave favorable
mortgages to Sens. Chris Dodd and Kent Conrad.
NOW
SAYS Called plea from homeowner facing foreclosure
"disgusting."
The Decorator
JOHN
THAIN
WAS
Chief of Merrill Lynch (2007-2009)
WHAT HE
DID Concealed $15 billion hole in Merrill balance
sheet until government subsidized the sale of his company. Went
skiing in Vail just before revealing losses.
WORST
MOVE Proposed $10 million bonus for himself as
company imploded; OK'd $1.2 million office refurbishing.
IS
NOW Facing class-action suit for concealing
losses.
Advertisement
The Maestro
HENRY
PAULSON
WAS CEO
of Goldman Sachs (1999-2006); Treasury secretary (2006-2009)
WHAT HE
DID Pushed for end to debt restrictions for banks
like Goldman, then arranged big bailout for Goldman.
WORST
MOVE TARP proposal just three pages long; made his
decisions "non-reviewable."
NOW
SAYS "I don't think we've made mistakes on the
major decisions."
The Big Loser
DICK
FULD
WAS CEO
of Lehman Brothers (1993-2008)
WHAT HE
DID Piloted Lehman to largest bankruptcy in
U.S. history; earned $22 million the year firm went bust.
WORST
MOVE Tried to avoid lawsuits by selling his $13
million Florida home to his wife for $100.
NOW
SAYS Feels "horrible" about Lehman, but insists his
management was "prudent and appropriate."
Mr. Too Big
KEN
LEWIS
IS CEO
of Bank of America (2001-present)
WHAT HE
DID Created ultimate too-big-to-fail company,
buying up Fleet, MBNA, Countrywide and Merrill Lynch.
WORST
MOVE Failed to catch a $15 billion loss at Merrill
before buying the firm; needed $20 billion bailout to close
deal.
NOW
SAYS It's a false "claim" to say "the banks that
caused this mess must be held accountable."
[From Issue 1075 — April 2, 2009]
Illustrations: Victor Juhasz.
Related Stories: