Yostivanich

How does one pro­pose “sound prac­tices” for prac­tices that are inher­ently unsound? Yet that is what our reg­u­la­tory guardians did. The state­ment is pow­er­ful evi­dence of the per­mis­sive approach bank reg­u­la­tors took toward the debt-dissolving finan­cial prod­ucts that our banks had been devel­op­ing, hawk­ing and using them­selves for years. And it’s good rea­son for Amer­i­cans to be out­raged by the “who me, what, where?” reac­tion of Mr. Bernanke and the S.E.C. to the rev­e­la­tion of Lehman’s Repo 105 scam.

via Op-Ed Con­trib­u­tors — How Wash­ing­ton Abet­ted the Bank Job — NYTimes.com. Extremely edi­fy­ing arti­cle on how reg­u­la­tors allowed banks to cre­ate deriv­a­tives that were backed with lit­tle to no real secu­rity and mar­keted as a gold stan­dard product.