Frontline: The Warning

As head of the Commodity Futures Trading Commission [CFTC], Brooksley Born became alarmed by the lack of oversight of the secretive, multitrillion-dollar over-the-counter derivatives market. Her attempts to regulate derivatives ran into fierce resistance from then-Fed Chairman Alan Greenspan, then-Treasury Secretary Robert Rubin and then-Deputy Treasury Secretary Larry Summers, who prevailed upon Congress to stop Born and limit future regulation.

Summers and Geithner got it wrong then and they’re working for Obama now. We have no regulation on any of this stuff yet and the ratings agencies that rated all of this junk AAA aren’t regulated either.

Obama, are you listening? Summers and Geithner have to go.