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Washington Seeks Banker Taxation

January 15, 2010

E.J. Manning

The practices of investment bankers Goldman Sachs have been flagged in day 2 of Washington hearings. The practice of creating, then betting against, certain subprime mortgage-backed securities has been compared to “selling a car with faulty brakes and then buying an insurance policy on the buyer.” Wow. So now the American public has another professional observation of wrongdoing.

In a rather ordinary looking article by Reuters entitled “Update 5- U.S. financial crisis panel to call Greenspan, Cox, ” these quotes were also gleaned:

* FDIC’s Bair: big bank profits lulled regulators

* SEC’s Schapiro: firm supervision was “not successful”

Without question, every American knows that the economic crisis that we are suffering from now (including massive joblessness) is a direct of betting or hedging on Wall Street, which hasn’t stopped. Washington hearings are supposed to miraculously solve the problem when the problems are already known. It is the opinion and observation of this writer that Washington lacks the will to regulate and prosecute the practices that are rampant on Wall Street and in this economy setup among bankers.

Washington claims to be on a fact-finding mission. The article by Reuters states that “to learn more, commission chairman Phil Angelides said on Thursday he will seek testimony from Greenspan, current Fed Chairman Ben Bernanke and former chairmen of the U.S. Securities and Exchange Commission, including Christopher Cox.”

What is puzzling is that it has taken Washington more than a year to have hearings to officially review the practices rampant in the financial system that the American taxpayer underwrites and because the practices are so rampant, the chances for prosecution for wrongdoing appear unlikely. However, Washington is looking at new ways to charge back the financial industry toward collecting back the huge amount of money spent on financial bailouts. Meanwhile, many Wall Street firms and big banks continue paying record incentive bonuses to high rolling “salesmen” in the industry in what is little more than government-stamped gambling that Americans have been forced to bankroll.

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