Author Mark Gilbert Says Obama Needs To Address Banks “Too Big To Fail”

[Omaha Steve]

http://www.laborradio.org/node/12829

Submitted by Doug Cunningham on January 27, 2010 - 7:32pm
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The author of a new book on the credit crisis says the issue of banks “too big to fail” must be addressed. Jesse Russell has more.

Mark Gilbert is the Bloomberg News London Bureau Chief and a regular columnist on global financial issues. This month he released a book titled “Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable.” Workers Independent News spoke with Gilbert in advance of President Barack Obama’s State of the Union address. Gilbert said one area where the Obama administration needs to push hard is concerning greater transparency at the banks:

: “…you still can’t tell where they’re taking money, where they’re losing money, and how much risk they’re taking. There needs to be wide ranging reform of how we measure risk within the finance industry and the kind of capital standards we hold the banks to. How much money they need to set aside toward these kinds of activities. That kind of transparency can only be good.”

Gilbert said the direction the administration has been moving concerning too big to fail banks is encouraging.

: “…the whole idea of propriety trading and that a bank can become so big and gamble its own money in the markets and yet threaten the very fabric of society if it goes wrong – I think the “too big to fail” problem is something that is going to need to be addressed. All of the noises are very promising and encouraging from the administration.”