wallstreetexaminer.com / by Craig Wilson / January 9, 2017
This is a syndicated repost courtesy of The Daily Reckoning. To view original, click here. Reposted with permission.
Nomi Prins is the best selling author of All the Presidents’ Bankers and is currently working on her latest book, Artisans of Money. Prins’ is a former Wall Street insider who has worked previously at some of the largest banks in the world including Goldman Sachs, Lehman Brothers and Chase Manhattan Bank. She continues to be a strong advocate for Glass-Steagall Act legislation and financial reforms of Wall Street.
When posed with the question regarding the financial crisis that began in 2008, and what may be in store for the ongoing crisis she remarked, “If we look at why the problems of 2008 happened, it was because issues in the United States financial structure at the beginning of the 2000’s had not been solved. We had deregulation of the financial industry in 1999, which allowed banks to consolidate deposits and loans. It allowed them to participate in more speculative betting activities. After that, two years later, we had a minor recession where scandals filled in our energy, telecoms and banking sectors. We then had substantially lower rates stemming in 2002 and 2003 that made banks turn to find something else they could make a lot of money. That something else was subprime mortgages that had been repackaged and sold multiple times over. When we get to 2007 and 2008, all of that fell apart.”