Other People’s Houses provides the clearest explanation yet of how the Financial Crisis of 2008 developed and why it could happen again.
Jennifer Taub is the author of financial crisis book Other People’s Houses. Formerly an associate general counsel at Fidelity Investments, Taub’s research and writing focuses on corporate governance and financial market regulation. Taub is a graduate of Harvard Law School and Yale College and a professor of law at Vermont Law School, where she teaches Contracts, Corporations, Securities Regulation, and White Collar Crime. She resides in Northampton, Massachusetts.
a blog on banking, corporate governance, and financial market reform.
June 13, 2016
On May 17th, was the witness invited by the Democrats to testify concerning three troublesome bills before a subcommittee of the House Financial Services Committee. Here’s a snippet of testimony and a link to the full remarks. A video is also available here.
“It’s odd. Just when private equity funds are in the sunlight thanks to Dodd-Frank and many have been exposed in SEC examinations as in violation of the law, you are now proposing that they be able to hide their tracks. . . [Also, this bill] would shockingly eliminate the annual independent audits of certain fund advisers to ensure they actually have the assets and securities they claim to hold. I call this the Madoff Loophole. . . Next, the SEC Regulatory Accountability Act would limit the agency’s ability to protect the investing public. Prior to issuing most regulations, the SEC would have to engage in a new cost-benefit process. Yet, the SEC already conducts economic analysis. And the securities laws already require the consideration of the promotion of efficiency, competition and capital formation. The SEC is also already subject to the Paperwork Reduction Act, the Regulatory Flexibility Act, and the Congressional Review Act. The existing requirements set out several speed bumps. The proposed requirements are tire shredders designed to bring progress to a crashing halt.”
Professor Jennifer Taub moderating an all-star panel following Senator Elizabeth Warren’s keynote address at the “Five Years On, Learning Lehman’s Lessons from the Panic of 2008,” event sponsored by Better Markets and George Washington School of Law. Panelists include (from l to r) Professor James Galbraith; former Special Inspector General of the TARP, Neil Barofsky; Professor John Coffee, Jr.; and former Senator Ted Kaufman.