August 9, 2012
A few days ago The Guardian published a very nice article concerning the destiny of the main personalities who were at the heart of the crisis.
Bankers, economists, central bankers and politicians were guilty of the worst meltdown since the war and in particular some of them played a decisive role in contributing to the birth and to further developments of the crisis.
The Guardian identified 25 people and asked itself where and what they are doing on the fifth anniversary of the credit crunch.
The first on the list is Alan Greenspan, chairman of the US Federal Reserve. Under his tenure the derivatives market went from barely registering to 500 trillion dollars. He was very responsible because of his opposition to any regulation, despite billionarie investors like Warren Buffet warning that they were “financial weapons of mass destruction”.
His responsibilities not only regard the derivatives market but every action done or not done depending on his theory that the market could regulate itself.
Where is mister Greenspan and what he is doing?
After he left the Fed he joined Pimco, the world’s largest bond investor as a special consultant and he also advised Deutsche Bank and hedge fund billionaire John Paulson.
Not bad after the disaster and the severe damage done to the people of the world. The list also includes Mervyn King, governor of the bank of England, Bill Clinton, George W Bush and Gordon Brown, former president of the USA and former prime minister of the UK, and other representatives of the financial, banking and political world. Almost all of them emerged from the crisis without any penalty and earning other highly-paid appointments often in conflict with their previous roles.
Only Cioffi and Tanin and a very small group have faced financial penalties for their role in causing the crisis, paiyng 1.05 m dollars but their investors lost 1.6 bn dollars. These sad conclusions are more disappointing because no regulation was decided regarding the amount of the bonuses of these personalities who continue to earn how much a poor worker could earn in ten lives.
I do believe that we need two urgent measures: to put a ceiling on the bonuses, strongly undermining the current figures, and avoid that the people that have had important roles in public administrations or in the monitoring of financial and banking markets, could have new assignments in the same sector managed by them.Author : Gianni PITTELLA MEP