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August 18, 2016 By Richard Bowen

Can a Future Financial Crisis Be Prevented?

The fifth of a sixth part McCuistion TV program series aired recently (watch it here). The series, a collaboration with the National Center for Policy Analysis Financial Crisis Summit, featured two of my Bank Whistleblowers United colleagues, William K. Black, Michael Winston and me.

The lineup of guests on this program included:

Richard Ebeling, PhD – Distinguished Professor of Ethics and Free Enterprise Leadership at the Citadel;

Ebeling Pic

Marianne M. Jennings, J.D. – Professor Emeritus, Arizona State University Ethical and Legal Studies, author of The Seven Signs of Ethical Collapse;

Jennings Pic

Peter J. Wallison – Arthur F. Burns Fellow in Financial Policy Studies, American Enterprise Institute, former member of the Financial Crisis Inquiry Commission, Author: Hidden in Plain Sight; Wallison pic

and, via prior taped interviews, Cary M. Maguire of The Maguire Center for Ethics at Southern Methodist University and Rep. Jeb Hensarling, (R-TX) Chair of the  House Financial Services Committee.

Richard Bowen and Cary Maguire
Richard Bowen and Cary Maguire

The guests believe that we blame the 2008 financial crisis on the private sector and let government off the hook. Yet both were at fault. Overall the consensus was that if we keep repeating the same mistakes as in the last crisis, another debacle is assured.

Lowering interest rates,  and the Fed is already pressuring Fannie Mae, Freddie Mac and the FHA  to significantly lower underwriting standards, reinforcing the too big to fail and too small to matter policies, well we’re headed down the same road once again. Too many government policies are repeating history.

And yes, the government enabled a crisis, yet the banks took advantage and leveraged their profits, committing wide-spread fraud. As Marianne Jennings pointed out, the banks should have been allowed to fail, bankers should have been held accountable, “capitalism without failure is like religion without sin”, you have to have both. By not allowing banks to fail, and not holding bankers accountable, we are allowing things to run amok.

Seems we do not learn from history. We’re headed down the same path unless we speak up and demand “transparency, accountability and regulatory reform.”

Can a Future Financial Crisis Be Prevented?

Watch the episode here

Related Posts

What Really Caused the 2008 Financial Crisis?
Whistleblowers: Who They Are and Why You Should Care
Ethics is Just Good Business
Bank Whistleblowers United… Restoring the Rule of Law to Banking

Changing the World…One Student at a Time
Are Regulations Killing Our Economy?
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Richard Bowen is widely known as the Citigroup whistleblower. As Business Chief Underwriter for Citigroup during the housing bubble financial crisis meltdown, he repeatedly warned Citi executive management and the board about fraudulent behavior within the organization. The company certified poor mortgages as quality mortgages and sold them to Fannie Mae, Freddie Mac and other investors.