Sandman Prevents Feds Seeing FTX Risk?

In her WSJ op ed, Allysia Finley asks “Where Was Biden’s SEC Sheriff on Sam Bankman-Fried?” &, hello, Joe’s sheriff had head in same sand as the Swamp’s sheriff did leading up to that 2008 real estate mortgage debacle …

Few remember the name Chris Cox. He was appointed chair of the Wall Street watchdog agency by President Bush. And, he was succeeded by another forgetful bureaucratic appointee, Mary Shapiro, the first woman to hold that top post thanks to President Obama’s alleged financial wizardry. Together, the Rep & the Dem presided over the SEC during one of the worst financial debacles z7 stagflation aftermaths in US history. And, neither (together with peers over at the FTC or Treasury) seem to have had any advance idea of how the US Government (including the WH, the federal bureaucracy it manages AND Congress) could follow a widespread federal policy of pushing to the Nth degree risky home mortgage loans on the banking & securities industries, then, blame the banking & securities industries for foolishly following their policy.

Yet, to this day, too many in the DC Swamp still do not seem to grasp this simple explanation of the role it played at that turning point in history offered recently by the Corporate Finance Institute (paraphrased): The 2008 financial crisis began with cheap credit and lax lending standards that fueled a housing bubble. When the bubble burst, the banks and markets were left holding trillions of dollars of worthless investments in subprime mortgages. The Great Recession that followed cost many their jobs, their savings and their homes. Yes, trillions were at stake and nobody in DC noticed the extraordinary risk? Did today’s SEC chair Gary Gensler see what was coming in FTX's wake?

Davd Soul