Spinning off derivatives could cost banks billions

A Democratic official familiar with Senate banking negotiations says a provision that would force banks to spin off their derivatives operations will be incorporated into sweeping regulatory legislation despite Obama administration misgivings. The provision would cost the nation’s largest banks billions of dollars in business. In an agreement struck Sunday, Banking Committee Chairman Christopher Dodd …

3 People we can blame for the financial crisis

One of our most popular articles discusses repeal of Glass Steagall. Robert Reich is Professor of Public Policy at the University of California at Berkeley. He has served in three national administrations. He also explains why our article was so popular: If any three people are most responsible for the failure of financial regulation, they …

OCC fought state authority to protect lenders

Arthur Wilmarth, law professor at George Washington University, believes the OCC, along with the Office of Thrift Supervision, had a lot to do with why subprime loans became as big a problem as it did, by taking the power to supervise banks away from the states. Lisa Madigan, the attorney general of Illinois, said in …

Senior SEC staff surfed porn sites while economy crashed

Senior SEC staffers spent hours surfing pornographic websites on government-issued computers while they were supposed to be policing the nation’s financial system. California Rep. Darrell Issa, the top Republican on the House Oversight and Government Reform Committee, said it was “disturbing that high-ranking officials within the SEC were spending more time looking at porn than …

SEC finally sues New Century Financial Corp

From 2007 through 2009 Mortgage Blues reported on the subprime crisis. Daily articles highlighted a nation in turmoil as financial greed and abuse rocked the country. Now Mortgage Blues gets to report on the aftermath. Lawsuits continue to see America in search of a single culprit. In one such suit by the SEC three former …