In The Warning, veteran FRONTLINE producer Michael Kirk unearths the hidden history of the nation’s worst financial crisis since the Great Depression. At the center of it all he finds Brooksley Born, who speaks for the first time on television about her failed campaign to regulate the secretive, multitrillion-dollar derivatives market whose crash helped trigger the financial collapse in the fall of 2008.
“I didn’t know Brooksley Born,” says former SEC Chairman Arthur Levitt, a member of President Clinton’s powerful Working Group on Financial Markets. “I was told that she was irascible, difficult, stubborn, unreasonable.” Levitt explains how the other principals of the Working Group – former Fed Chairman Alan Greenspan and former Treasury Secretary Robert Rubin – convinced him that Born’s attempt to regulate the risky derivatives market could lead to financial turmoil, a conclusion he now believes was “clearly a mistake.”
… click online on the link for Frontline’s video … or directly on The Warning: The Go-Go ’90s, Oct. 20, 2009, 55.21 min.
Born’s battle behind closed doors was epic, Kirk finds. The members of the President’s Working Group vehemently opposed regulation – especially when proposed by a Washington outsider like Born … (full text).
Links (found on wikipedia):
Inside The Great American Bubble Machine, July 2, 2009;
TESTIMONY OF BROOKSLEY BORN, CHAIRPERSON COMMODITY FUTURES TRADING COMMISSION CONCERNING THE OVER-THE-COUNTER DERIVATIVES MARKET BEFORE THE U.S. HOUSE OF REPRESENTATIVES COMMITTEE ON BANKING AND FINANCIAL SERVICES, JULY 24, 1998;
“THE LESSONS OF LONG-TERM CAPITAL MANAGEMENT L.P.” REMARKS OF BROOKSLEY BORN, CHAIRPERSON COMMODITY FUTURES TRADING COMMISSION CHICAGO KENT-IIT COMMODITIES LAW INSTITUTE CHICAGO, ILLINOIS, OCTOBER 15, 1998.
Brooksley E. Born on Markets Wiki.