The New York Times columnist and author, Gretchen Morgenson talks about the sins of omission that led to the financial crisis and Washington�s role in laying the groundwork for it
Having delved into the minutiae of the financial crisis in your book – providing the names, ranks and serial numbers of those involved -- what surprised you the most about it?
I would say it was the collaboration between the private sector and the regulatory framework and law makers. We’ve always known about public/private partnerships, but this one was much more significant than any before it. You had a government entity being encouraged to help promote home ownership, when they’re really a regulator and should have been more like a ‘cop on the beat’. The degree to which the regulators were co-opted from the outset by the people promoting home ownership was a pretty stunning revelation.
In your view, should a ‘cap’ be set on executive compensation?
[This article has been reprinted, with permission, from Rotman Management, the magazine of the University of Toronto's Rotman School of Management]