A Regulator Heeds Lessons From the Past

[SpartanDem]

When a meltdown on Wall Street threatened the financial system in 1998, Gary G. Gensler was still a newcomer at the Treasury Department. He was part of the government team that orchestrated the rescue of Long-Term Capital Management, a big hedge fund that had made bad bets on exotic financial contracts known as derivatives. But once the smoke cleared, Gensler closed ranks with others in the Clinton administration who decided against subjecting derivatives to tighter regulation.

"Looking back now, it's clear we should have done more then," Gensler said in a recent interview.

Since President Obama brought him back to government to lead the Commodity Futures Trading Commission (CFTC), Gensler has aggressively pushed for strict new rules to govern derivatives as the administration campaigns to revamp financial regulation. He has appeared frequently before Congress to press his case. This has meant confronting former colleagues at Goldman Sachs, where he began his career, and at other big banks that have profited from the agency's traditionally light touch.

"Both the financial system and the regulatory system failed the American public," he said. "I want all options on the table."

http://www.washingtonpost.com/wp-dyn/content/article/2009/07/23/AR2009072303609.html

I remember there was some complaining about this appointment due his Goldman Sachs ties, but it's starting to look like a good one now.

[elleng]

1. Excellent

Thanks for this.

[yourout]

2. Anything resembling a Dem with a backbone is cause for celebration tonight.

Nice to see.