New York Fed Director Shills for Bank of New York, Argues Against Rule of Law

08-15-2011 • NakedCapitalism.com/

But what is even more disturbing than her disregard for the most basic facts is the underlying logic: that it’s perfectly OK to break the law if you make enough money at it to create employment. As David Dayen notes incredulously: [S]he is actually arguing that Schneiderman, by defending the rights of investors and seeking the truth on out and out securitization fraud, is threatening the existence of the financial sector in New York City. No, really… The banks must continue looting, the story goes, or they’ll stop creating jobs in Manhattan. If you accept that logic, it takes you some interesting places. Andrew Haldane of the Bank of England has already told us what inefficient looters the bank really are. His analysis concluded that the cost that the big banks imposed on the global economy in th financial crisis was so great that even if you spread a low estimate of the costs out over 20 years, the first year charge would wipe them out. Since I believe members of the Mafia make less money on average than Wall Street employees, they are more efficient looters, and Wylde ought to be promoting them too.