Full Story of Brooksley Born’s Attempts to Regulate the Derivatives Market

In The Warning, veteran FRONTLINE producer Michael Kirk unearths the hidden history of the nation’s worst financial crisis since the Great Depression. At the center of it all he finds Brooksley Born, who speaks for the first time about her failed campaign to regulate the secretive, multitrillion-dollar derivatives market whose crash helped trigger the financial collapse in the fall of 2008.

“I didn’t know Brooksley Born,” says former SEC Chairman Arthur Levitt. “I was told that she was irascible, difficult, stubborn, unreasonable.” Levitt explains how the other principals of the Working Group on Financial Markets- former Fed Chairman Alan Greenspan and former Treasury Secretary Robert Rubin — convinced him that Born’s attempt to regulate the risky derivatives market could lead to financial turmoil, a conclusion he now believes was “clearly a mistake.”
Born’s battle behind closed doors was epic, Kirk finds. The members of the President’s Working Group vehemently opposed regulation – especially when proposed by a Washington outsider like Born.

MUST WATCH documentary of the last CFTC Chairperson who truly represented the public and took on the elite banksters over derivatives regulation.

“I walk into Brooksley’s office one day” says Michael Greenberger, a former top official at the CFTC . “She’s hanging up the telephone; she says to me: ‘That was Larry Summers. He says, “You’re going to cause the worst financial crisis since the end of World War II.”…He says he has 13 bankers in his office who informed him of this. Stop, right away. No more.‘”


Watch The Warning on PBS. See more from FRONTLINE.

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Comments

  1. It seems to me that there is are at least 3 layers of power hinted at in this short review. 
    The lowest echelon of the power elite are our presidents.  These preselected munchkins and psychopaths are allowed to perform their brief dance on the world stage,  allowed to unfold their consumate ego and narcissism for all to see,  given unlimited perks coupled with a modest salary and a nice house, allowed to appoint the people who are also pre-staged to shuffle on to the stage as the new level of the power elite.  Then the C IN C  is  given the hook.  With  the nature of assassinations everpresent on the mind of the president,  these lowest of the low are, by now, acutely aware that  the hook means business.  That’s is another very interesting story. If anyone is in doubt about this, ask yourself why these nitwits would be allow to soil the White House with scandal upon scandal and be premitted to remain in office.

    The second tier; the likes of Greenspan, Volker, Rubin, Summers, Geithner and Bernanke, are all appointed by these bobbleheaded drones  to perform the bidding of of the third tier, the overlords who occupy immense estates surrounded by moats and dragons.  It’s this third tier who have complete control over the booms, busts, bubbles and cycles which are, in reality, as perfectly predictable  as the orbits of the solar systems around the galactic core.
    If you doubt this, is it safe to surmise that’s there one whit’s worth of difference between  Robama and Obomney.  Tall, good looking, modestly wealthy, possessing a slight ability to talk on the public stage—not coherently–but still able to spew a few predigested sounds bites to the idiots who are sucked into this Junior High School production of ‘Much Ado About Nothing”, are apparently the best we can puke up as presidential pretenders.    If anyone thinks either of these twits will make the least bit of difference in the course of this country and world, I have some really nice land just east of I 95 near Tonopah NV to sell you. Nice if you like sagebrush, rabbits and coyotes as neighbors.

    • Strangely, tonopah may be a good bugout location if you’ve stocked food, ammo, and have a well…..

    • You left out that as long as the sheeple have Dancing with the Stars and football and their latest electronic crap from China they are oblivious to what is actually happening.

  2. Not only did Born know that derivatives would destroy our economy but so did Greenspan, Rubbin, Summers et al. These monsters were created with one goal in mind… to bring the world to its knees. When money ceases to work the world will beg for a solution. And what better solution then for us to trust them once again – only this time with a One World Currency. That is and has been their plan for a very long time.

  3. Exactly Saddle  If you are former military that area would be fine for those qualities you note.  I like the Elko/Battle Mountain area of northern NV   Quarter sections can be had for $1,000 an acre or less but better bottom land with water will go for about $4,000 an acre, bordering on BLM land and lots of game to boot.  Cold in the winter but what the heck, better than the urban landscapes we think as safe harbor. Cold weather is no problem and tends to discourage all but the most hardy venturers

  4. “I didn’t know Brooksley Born,” says former SEC Chairman Arthur Levitt. “I was told that she was irascible, difficult, stubborn, unreasonable.” ”They told me there were going to be market disasters if Born’s drive was successful in regulating the derivatives market”. He based his decision of innuendo and heresy. What qualifications did he have coming into this job; able to say “Yes” at the right time?
    I don’t know Arthur Levitt but I’ve been told that he is a wife beater, child molester, failed regulator, gossiper and generally a person of low integrity, with links to organised crime.
    It may be that one day I will be able to announce that I made a mistake, too, just like Levitt, who is trying to wash himself clean of his dereliction of duty. He made a decision based on what was in front of him and had the opportunity to deny the rumour mongerers. Me on the other hand, I have nothing but innuendo in front of me but believe every word from my source.

  5. I have watched many Frontline docus. Although they invariably have tons of real data that is there to build their credibility, they are ultimately about controlling the reality, limited hangout, misdirection. If they are bothering to run this, there is an agenda. This would be another example of what I have been noting, some actual reporting of the doings of the lower-level puppets that manipulate the muppets, as well as more and more exhorting-to-pitchforks flavor to MSM opinion pieces. I’m discerning a very large play being deployed, sacrificial heads gotta roll, both to give the impression there are white hats somewhere in the governmental higher levels, but ultimately as a leadup to what I see the finale being of our overlords presenting to the world at large that all this corruption is because of decentralized control and a new, honest, in-our-best-interest self-appointed group located somewhere between the UN and Pedoland, I mean Belgium, will now be in charge of this rock.
     

  6. A true and good market works with natural stuffs such as gold and silver and not with derivatives that can be created a lot out of nothing. More regulations are going to cause more problems to the economy as there won’t be any free market.

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